treasurer - utah pta treasurers handbook-1.pdfpta/ptsa will be referred to as pta in this handbook....

2019-

2020

TreasurerHandbook

To promote the welfare of children and youth in home, school, places of worship, and throughout the community.

To raise the standards of home life.

To advocate for laws that further the education physical and mental health, welfare, and safety of children and youth.

To promote the collaboration and engagement of families and educators in the education of children and youth.

To engage the public in united efforts to secure the physical, mental, emotional, spiritual, and social well-being of all children and youth; and

To advocate for fiscal responsibility regarding public tax dollars in public education funding.

Purposesof

PTA

Utah PTA will help every child realize his full potential and will:

Advocate: Support and speak on behalf of children and youth, and

Involve: Encourage positive involvement in all facets of a child’s life, and

Develop: Assist in developing skills to raise and protect children and youth.

The Mission of PTA is three-fold:

To support and speak on behalf of children and youth in the schools, in the community, and before governmental bodies and other organizations that make

decisions affecting children;

To assist parents in developing the skills they need to raise and protect their children; and

To encourage parent and public involvement in the public schools of this nation.

UtahPTA

MissionStatement

NationalPTA

MissionStatement

3Utah PTA Treasurers Handbook − Updated 2019

The BasicsMy Critical Information At-A-Glance . . . . . . . . . . . . . . . . . . . . . . . . .10

Welcome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

The PTA Treasurer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11What is Fiduciary Responsibility? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12What Fiduciary Responsibility Includes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Duties of the Treasurer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Financial Time Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Basics of PTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15Mission and Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15PTA Line of Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Structure of PTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Working With The President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18Working with the Membership Chair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Dues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Accurate Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19When Dues are Due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Year-Round Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Money Matters Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20The PTA Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20A Unit in Good Standing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Accountability and Transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Conflict of Interest Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21PTA Funds vs . School Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22School District Foundation Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Table of ContentsTreasurer

4 Utah PTATreasurers Handbook − Updated 2019

Annual Financial Reconciliation (AFR) . . . . . . . . . . . . . . . . . . . . . . .24Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

What? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Why? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Who? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24When? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25How? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

The ProcessesTransition Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

The Outgoing Treasurer is Responsible For… . . . . . . . . . . . . . . . . . . . . . . . . . 28An Incoming Treasurer’s Checklist: Have I … . . . . . . . . . . . . . . . . . . . . . . . . 29

What to File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30Current Year Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Ten-Year Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Permanent Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32PayPal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Venmo Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33MemberHub Store . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Bank Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Accepting Credit Cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Internal Control Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35Do You Have These Basic Controls in Place? . . . . . . . . . . . . . . . . . . . . . . . . . 35

Budgeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36Developing the Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Approving the Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Amending the Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Carryover or Reserve Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Board Designated Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Receiving and Disbursing Funds . . . . . . . . . . . . . . . . . . . . . . . . . . .40Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Disbursements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Cash Box Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42

Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43Treasurer’s Report Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Year-End Financial Statement Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43


Annual Financial Reconciliation (AFR) . . . . . . . . . . . . . . . . . . . . . . .44Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

The AFR Procedure is as Follows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44AFR Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Membership Dues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46Instructions for Submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

State and National Dues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Council Dues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Sales Tax Refund Request Forms . . . . . . . . . . . . . . . . . . . . . . . . . . .47Instructions for Submitting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Most Common Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Unit Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Council Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Region Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Specific IssuesExempt-Organization Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50

501(c)(3) Group Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Sales Tax Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Fundraising and Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Employer Identification Number (EIN) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Determination Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Benefits of Tax-Exempt Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Protecting Exempt Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Responsibilities of Tax-Exempt Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Gross Receipts Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Form 990N (e-Postcard) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54Substantiation and Disclosure Requirements . . . . . . . . . . . . . . . . . . . . . . . . . 54Unrelated Business Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Form 1099-MISC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56For More Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Fundraising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58Standards for PTA Fundraising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Policies and Regulations Affecting Fundraising . . . . . . . . . . . . . . . . . . . . . . . 59Selection of an Appropriate Fundraiser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Contracts with Commercial Vendors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Donation Fundraisers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Corporate Sponsorship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61Charitable Solicitations Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Commercial Co-Venturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Games of Chance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Accounting for Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63


Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64Required Coverage for PTAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64Different types of policies: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Mismanagement of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66Guidelines to Follow When Money Has Been Mismanaged or Embezzled: . 66

Utah PTA Food Stamps Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67

The Use of Gift Cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68What Are Some of the Ways That PTAs Are Currently Using Gift Cards? . . 68What Are the Potential Problems with Using Gift Cards in These Ways? . . 68How Can These Problems Be Avoided? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

FAQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70Where can I find a list of what our PTA can or cannot spend money on? . . . 70When do we need to amend our budget? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70How do we get a 501(c)(3) or determination letter to give to a potential donor? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70What information should the Treasurer be reporting to the executive committee and the board? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70Are local PTAs covered by insurance provided by Utah PTA? . . . . . . . . . . . 71When would our PTA be required to issue a 1099-MISC? . . . . . . . . . . . . . . . 71I’ve heard that our PTA cannot carry over more than $2000 from one year to the next . Is that true? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71Can we donate PTA funds to help them? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71A new school is being built and some of our students will be attending the new school . How much of our funds do we have to give the new school’s PTA? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72Our PTA is going to end the year with more money than we thought we would . How do we gift the excess money to the school? . . . . . . . . . . . . . . 72What should happen if someone loses a receipt for reimbursement? . . . . . 72Can we reimburse board members for mileage for attending Leadership Convention? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72


Appendix I

Reporting FormsAnnual Financial Reconciliation (AFR) . . . . . . . . . . . . . . . . . . . . . . .75

Procedure Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75Report Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Year-End Financial Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79

Unit Sales Tax Refund Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81

(For Local, Council, and Region Use) . . . . . . . . . . . . . . . . . . . . . . . .81

Council Sales Tax Refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83

Compilation Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83

Region Sales Tax Refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85

Compilation Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85

Appendix II

ToolsProposed Budget Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89

Funds Received Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91

Check Request Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93

Bank Reconciliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95

Samples of Treasurer’s Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . .97

Monthly Treasurer’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99

Budget Analysis Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101

Money Counting Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103

Prizes / Gift Card Sign-out Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . .105


Beginning Cash Box Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107

PTA Event Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109

Financial Grant Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

In-Kind Donation Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Sample Donation Request Letter . . . . . . . . . . . . . . . . . . . . . . . . . . 112

Sample Thank You Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

PTA Basic Fiscal Management Procedures . . . . . . . . . . . . . . . . . . 114Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

PTA Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114Do You Have These Basic Controls In Place? . . . . . . . . . . . . . . . . . . . . . . . . 114Guidelines to Follow When Money Has Been Mismanaged or Embezzled . 116

Signature Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

PTA Ethics/Conflict of Interest Policy . . . . . . . . . . . . . . . . . . . . . . . 119Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

Guidelines to Follow When There has been Mismanagement or a Conflict of Interest 120

Signature Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

General PTA InformationWhat are the National Standards? . . . . . . . . . . . . . . . . . . . . . . . . .124

Key Points To Remember . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126

PTA Line of Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126

Why be a PTA School? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127

Utah PTA Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128

Be A PTA Professional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129

Utah Regions Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130

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The Basics


My Critical Information At-A-GlanceLocal President ___________________________________ Phone ________________________________

Email _________________________________________________________________________________

Region # ________________________________________ Council _______________________________

Council President _________________________________ Phone ________________________________

Email _________________________________________________________________________________

Region Director ___________________________________ Phone ________________________________

Email _________________________________________________________________________________

Principal ______________________________________________________________________________

School Address _________________________________________________________________________

Phone___________________________________________ Fax __________________________________

Email _________________________________________________________________________________

My Board:

Name ___________________________________ Position ______________________________________

Phone ___________________________________ Email ________________________________________

Name ____________________________________ Position ______________________________________

Phone____________________________________ Email ________________________________________

Name ____________________________________ Position ______________________________________

Phone____________________________________ Email ________________________________________

Name ____________________________________ Position ______________________________________

Phone____________________________________ Email ________________________________________

Name ____________________________________ Position ______________________________________

Phone____________________________________ Email ________________________________________


Welcome to PTA leadership! Thank you for your willingness to serve. Your role as a PTA Treasurer is an important one. It carries a lot of responsibility, but it will also bring satisfaction and fulfillment. The work of the Treasurer provides the financial foundation upon which the work of the PTA can be built.

Accurate financial records are needed to ensure that the finances of the PTA unit are being handled appropriately, in accordance with applicable laws and regulations, and according to the desires of the PTA members. The information in this handbook has been compiled for use by local, council, and region Treasurers. PTA Bylaws, IRS regulations, Utah State Tax Commission regulations, and commonly accepted accounting procedures are the basis for the guidelines provided in this handbook.

The purpose of this handbook is to orient you to your major areas of responsibility. It explains many rules, regulations, procedures, and policies for sound financial management. Because the Board of Directors is responsible for the financial well-being of the PTA unit, the information in this handbook should be shared with your Executive Committee and Board members.

PTA/PTSA will be referred to as PTA in this handbook. Although the focus of the procedures and policies outlined in this handbook is the local PTA, the council or region PTA is required to abide by them as well.

Welcome

The Treasurer, elected by the members, is the legally responsible, and authorized custodian of the funds of the PTA unit. The Treasurer does more than make deposits and write checks. It is the Treasurer who ensures that the unit’s finances are properly handled. This is a critical job, since proper handling of the unit’s finances will keep the unit in good standing and maintain its credibility with the members, the school, and the public.

A Treasurer must be diligent, knowledgeable, and conscientious in order to maintain accurate and up-to-date records. These records should be kept in accordance with standard, accepted accounting practices and must comply with PTA bylaws and IRS regulations.

As an elected officer of the PTA unit, the Treasurer is a member of the Executive Committee and the Board of Directors. The Treasurer’s active participation in all executive committee and board meetings is imperative so that he or she has input into the business of the board and in the decision making.

Members of the board of directors of any non-profit organization have important responsibilities. Some of these responsibilities are imposed by law; others are the result of years of court decision which have imposed various “fiduciary duties” on directors.

The PTA Treasurer


fiduciary (fi-du-ci-ar-y)n. a person who holds something

in trust for another; a trustee

What is Fiduciary Responsibility?

A one-sentence summary of fiduciary responsibility might be “It ain’t your money”!

The ultimate authority for managing the affairs of the organization is vested in the board of directors. Because the law grants directors that authority, the law also imposes on the members of the board of directors an obligation to act in the best interests of the organization.

The law requires board members to act: ■ In good faith; ■ With the care an ordinary prudent person in a like position would exercise under similar circumstances; ■ In a manner the board member reasonably believes to be in the best interests of the organization.

What Fiduciary Responsibility Includes ■ Duty of Care—attending board meetings, keeping informed, and fulfilling responsibilities, ■ Duty of Obedience—following the organization’s bylaws and complying with state and federal law, ■ And Duty of Loyalty—putting the interests of the organization first and promoting the organization’s

purpose rather than any private interest.

To effectively oversee the organization’s financial affairs, the duty of care requires that the board be informed about financial activities, including the adequacy of internal controls. Board members should expect the Treasurer to present timely and adequate financial reports. (For information about internal controls, see page 37. For information on Treasurer’s reports and forms, see pages 45 and 77-89.)

Another important concept under the duty of care is the distinction between delegation and abdication. At one time or another, most Treasurers will need or want to delegate some of their responsibilities such as counting money, making bank deposits, presenting financial reports, and preparing IRS filings. Such delegation is legal, but delegation is not the same as abdication. Delegation does not relieve the Treasurer of liability. The Treasurer must make sure that any person to whom his or her responsibilities are delegated is fully trained in the appropriate procedures, and the Treasurer must monitor those to whom he or she has delegated authority.

To fulfill the duty of obedience, all board members, including the Treasurer, must know and understand the PTA’s bylaws and applicable state and federal law. The bylaws should be reviewed by the board at the beginning of each year, and the Treasurer should keep a copy of the bylaws in the current year’s financial


file. Participation in available training opportunities is crucial if board members are to understand and comply with state and federal law, including frequent changes in IRS regulation.

Under the duty of loyalty, each board member commits allegiance to the organization. Actions and decisions of board members must promote the organization’s purpose and well-being rather than benefit any individual. Conflicts of interest should be avoided wherever possible. When such conflicts exist, they must be fully disclosed. Additional information about the conflict of interest policy is located on page 21 & 114-121.

Additional information about these responsibilities is outlined in the forms “PTA/PTSA Ethics/Conflict of Interest Policy” and “PTA/PTSA Basic Fiscal Management Procedures”.

Duties of the Treasurer

The specific duties of the Treasurer are outlined in the bylaws (Article VII: Duties of Officers, Section 5, for local PTAs and Article IX: Duties of Officers, Section 5, for councils). The Treasurer shall:

■ Have custody of and be responsible for all funds of the PTA unit.

■ Develop, with the executive committee, an annual budget to be approved by the local PTA membership (or council voting body).

■ Keep a full and accurate account of receipts and expenditures of all monies of the PTA unit.

■ Count all monies with three (3) people present, and deposit all monies in the bank the same day received.

■ Make disbursements as authorized, in accordance with the approved budget.

■ Co-sign all checks with the President, President-elect, or Secretary. (No two officers who are related by blood or marriage or who reside in the same household may be signers on the checking account.)

■ Make a monthly remittance of state and national portions of membership dues to Utah PTA.

■ Present a Treasurer’s report at every meeting of the executive committee, board of directors, and general membership.

■ Make a financial report at the annual meeting, and submit a full written year-end financial statement to the incoming executive committee.

■ Submit the books, after they have been closed for the year, for an AFR (Annual Financial Reconciliation) by an auditor or an AFR committee.


Financial Time LineKeep copies for your records of all reports and forms submitted

Current version of forms are available on Utah PTA website: www.utahpta.org

July 1 Fiscal Year Begins/Change over PTA checking account signers PTA Board List (Incoming) Local PTA submit to MemberHub

By the 25th Membership Dues (Remit monthly) National & State portions submit to Utah PTA Council Membership Dues (If applicable) Council portions submit to Council PTA

August 1 Year-End Financial Statement (previous year) Local PTA submit to MemberHub Annual Financial Reconciliation Report (AFR) Local PTA submit to MemberHub Copy of Completed 990 Form Local PTA submit to MemberHub Sales Tax Refund Request Form Local PTA submit to MemberHub

August 15 Council Summary of Year-End Financial Reports Council submit to MemberHub Sales Tax Forms-Council Compilation Council submit to MemberHub

September 1 Council/Region Summary of Year-End Financial Reports Confirm submissions on MemberHub Sales Tax Forms - Region Compilation Region submit to MemberHub

September 15 Budget/Budget approved minutes Local PTA submit to MemberHub Signed Ethics/Conflict of Interest Form Local PTA submit to MemberHub Signed Basic Fiscal Management Form Local PTA submit to MemberHub Proof of Insurance Local PTA submit to MemberHub September 25 Membership Dues - Early Bird Remittance Deadline

October 1 Council/Region Summary of Beginning Year Reports Form Council submit to MemberHub

October 15 Council/Region Summary of Beginning Year Reports Form Confirm submissions on MemberHub

November 1 Local, Council and Region Report #1 due Online on Utah PTA Website

December 1 Membership Dues - Remittance Deadline to participate in Utah PTA programs

February 1 Sales Tax Refund Request Form Local PTA submit to MemberHub Arts Education Fund Grant Deadline Local, Council and Region Report #2 due Online on Utah PTA Website

February 15 Sales Tax Forms - Council Compilation Council submit to MemberHub

March 1 Sales Tax Forms - Region Compilation Region submit to MemberHub

June 1 Local, Council and Region Report #3 due Online on Utah PTA Website

June 30 Fiscal year ends and financial books must be closed, Prepare Year-End Financial Reports: Year End Financial Statement, Annual Financial Reconciliation

Report, 990-Form, Sales Tax refund Request


Basics of PTA

LLocal CCouncil RRegion SState NNational

and

LLocalCCouncilRRegionSStateNNational

Mission and Purposes

PTA is a child advocacy organization. The Mission and Purposes of Utah PTA and National PTA outlined on the inside front cover of this handbook apply also to the local or council PTA unit, as specified in the bylaws in Article II. All PTA decisions, financial and non-financial, should be made with the Mission and Purposes in mind.

PTA Line of Communication

Structure of PTA

National PTA is comprised of 54 Congresses - 50 States, the US Virgin Islands,Puerto Rico and military schools overseas.

National PTA identifies each unit (State, Region, Council & Local) by an eight-digit PTA Unit ID Number. (Example: 12345678)

Utah PTA is divided into 21 regions. Generally there is one school district per region, except in areas with small districts (see the Regions Map that shows what school districts are in which region at the back of this handbook). At the head of each region PTA is a Region Director who serves on the Utah PTA Board of Directors. One or more associate directors assist the Region Director, as the size of the region warrants.

Eleven of Utah's regions are large enough to be divided into councils. Each council has a Council President, Treasurer and other Board members to train and assist the local PTAs. Councils work with the region Boards to oversee the local PTAs in their area. In the 9 regions where there are no councils, the Region Director and Board fills the role.

The most important interaction with children and their parents happens at the local PTA level. The rest of the levels serve to support the work of the local PTA.


The Council Treasurer can and should be the first person whom a local Treasurer contacts with questions about financial issues. If additional information or help is needed, the local Treasurer can then be referred to the Region Director (or Region Treasurer, if applicable) and then, if necessary, to the Utah PTA Treasurer. Frequent communication between local Treasurers and Council Treasurers will help facilitate appropriate accounting practices and avoid misunderstandings and problems. Training of local Treasurers by Council Treasurers should occur throughout the year.

Utah PTA identifies each unit by the Employer Identification Number (EIN) assigned by the IRS. (Example: 87-12345678) All PTAs in Utah in good standing fall under a group tax-exemption granted to Utah PTA. The EIN is used on bylaws, sales tax refund request forms, and IRS filings and correspondence.


Working With The PresidentThe Treasurer, elected by the members, is the legally responsible, authorized custodian of the funds of the PTA unit. However, the President, who bears full responsibility for the total affairs of the PTA unit, must work closely with the Treasurer at all times and have a complete understanding of all financial matters.

Frequent, effective communication between the Treasurer and the President is vital. In addition, as the President fulfills his or her role in the PTA’s money matters, the President and Treasurer create a system of checks and balances that help ensure that everything is being handled properly.

Here are a few of the financial responsibilities the President should fulfill:

■ Fiduciary responsibility. All members of the Board of Directors have the same fiduciary responsibility (mentioned earlier in this handbook), part of which is to provide financial oversight. The President, as well as the other board members, should be studying the reports of the Treasurer, requesting additional information, and asking questions of the Treasurer on a regular basis. The Treasurer should not take offense to such scrutiny. The Treasurer, in fact, should encourage a thorough examination of his or her records so that allegations of mishandling cannot be made at a later date.

■ Budgeting process. The President should serve as a member of the budget committee (see section on Budgeting in this handbook). The President should also study and understand the budget-to-actual analysis so appropriate budget amendments can be proposed as needed.

■ Internal controls. The President plays a vital role in maintaining an adequate internal control system (see Internal Control Systems in this handbook). Among other things, the President is the preferred second signer on all checks, approves all check request forms, and reviews the monthly bank statement before giving it to the Treasurer. The President should also be available and willing to count money and make deposits at the bank as needed.

■ Protection of tax-exempt status. The President should understand and help ensure compliance with the IRS’s requirements of 501(c)(3) organizations, including rules about corporate sponsorship (see pages 36-41 and 47).

■ Embezzlement or mismanagement of funds. In the unfortunate event that embezzlement or mismanagement is suspected (or known), the President must follow established guidelines (see page 58), including holding a hearing with the person involved. The President also bears a great responsibility to ensure that no public or private statements are made about a suspected problem.

If the President and Treasurer each fulfill their financial responsibilities, they will be “cents”-able together!


Treasurers and membership chairs should work together to remit the state and national portions of membership dues to MemberHub by the 25th of each month. (Utah PTA is required to make its remittance to National PTA on a monthly basis.)

Membership dues remittance is made through MemberHub and is quick and easy. A membership list with at least a name and email address can be uploaded to MemberHub. MemberHub will calculate the total National, State, and Council Membership dues payable based ont he number of members with dues outstanding. Payment will be made through ACH eCheck with a flat $1.00 fee. Once the eCheck is sent, you can see a breakdown of all payments made. A printout of the payment receipt should be attached to a Check Request form for your records. For more information, see support.MemberHub.com.

The state and national portions of dues do not belong to the local PTA and are never considered to be part of the local PTA’s income. They should be recorded as a “payable” or as “receipts/disbursements of monies not belonging to us.”

The Treasurer’s current file should contain an up-to-date membership name list. Information about the most current National PTA program can be found on the Membership page of the Utah PTA website.

MembershipWorking with the Membership Chair


Dues

Local dues vary according to local PTA bylaws. Council dues vary according to council bylaws. Utah PTA and National dues are established by vote of the delegates at Utah PTA Business and Resolutions Meeting at the Leadership Convention and National PTA Convention. Dues cover costs of printing, mailing, leadership training, developing programs, and maintaining Utah PTA and National PTA offices. Membership dues are not fundraisers. Dues sustain the function and purposes of PTA.

Accurate Records

■ The Membership Chair keeps an up-to-date roster of PTA members

■ The Treasurer keeps record of total amount for membership received and dues paid.

When Dues are Due

Membership dues must be submitted to MemberHub by the 25th of every month and . . .

■ BySeptember 25 to be eligible for the Back-to-School Award.

■ ByDecember 1 to qualify for Reflections, other Utah PTA programs, and to receive sales tax refunds.

■ ByFebruary 1 of the current year to be a PTA in good standing on Utah PTA records and to be eligible for other Membership Awards.

Year-Round Schools

A year-round school may designate its enrollment month and “membership year” according to its calendar, as long as Utah PTA remittance dates are met. If the school has several tracks (for example, there are four tracks in the 45-15 plan), the annual membership drive should be extended to allow sufficient time for parents from all tracks to join.

Information


The PTA Fiscal Year

A fiscal year is a twelve-month accounting period. Many businesses conduct their financial operations based on a fiscal year rather than the calendar year. PTAs in Utah operate on a fiscal year of July 1 to June 30, as specified by Article XII of the local PTA bylaws and Article XIII of the council bylaws. Each PTA unit is required to operate within that accounting period. The fiscal year corresponds with the term of office.

Resources

■ Utah PTA Treasurer Handbook. This newly revised handbook contains detailed information on many topics of interest to the Treasurer. It also includes sample “tool” forms, such as money counting forms, check request forms, and Treasurer’s reports, and report forms, such as audit reports and sales tax refund request forms.

■ The “Financial” section of the annual Utah PTA Presidents Handbook. Each President receives a copy of this handbook.

■ Treasurer page of the Utah PTA website (www.utahpta.org/treasurer). The most current information on financial matters can be found here. It is updated as often as possible.

■ National PTA’s PTA Finance Quick-Reference Guide. Register at www.PTAKit.org for access to the PTA Back to School Kit

■ IRS website (www.irs.gov) for forms and instructions for IRS Form 990EZ and 990N, as well as publications on tax-exempt issues.

■ Stay Exempt: Tax Basics for 501(c)(3)s online workshop and web-based mini-courses at www.stayexempt.irs.org.

A Unit in Good Standing

For a local PTA to be “in good standing,” it must be in compliance with National PTA and Utah PTA bylaws and guidelines, including the following:

■ Adhering to the purposes and basic policies of PTA

■ Having an EIN (Employer Identification Number) from the IRS on file with Utah PTA

■ Submitting the names and contact information of current officers on MemberHub

■ Having bylaws renewed by Utah PTA every three years

■ Remitting national and state portions of membership dues to Utah PTA by dates designated. (Note: The current procedure requires local PTAs to make monthly remittances, by the 25th of each month, with a final remittance by June 25th.)

Money Matters Overview


■ Submitting year-end financial statement, AFR (Annual Financial Reconciliation) report, and approved budget on MemberHub.

■ Submitting IRS Form 990EZ, if required, or Form 990N.

If a local PTA is not in good standing, neither the unit nor the students attending the PTA’s school are eligible to participate in PTA programs (such as Reflections or Battle of the Bands) or receive awards. Sales tax refunds will not be issued to PTA units not in good standing, and these units may be subject to loss of their tax-exempt status through Utah PTA’s group exemption.

Accountability and Transparency

“Accountability” and “transparency” are two buzz words that represent important concepts in accounting and financial operations. An attitude of open and full disclosure is important for all nonprofit organizations. The more transparent and accountable the PTA unit, the better. Providing relevant, reliable information about the PTA’s activities and its financial position—through newsletters, regular Treasurer’s reports, and year-end financial statements, for example—will fulfill the association’s responsibility to be accountable and transparent. Who is the PTA accountable to? To the members, sponsors, community, and government regulatory agencies. Each local PTA is also accountable for the good reputation that PTA has earned over its long history.

Conflict of Interest Policy

Members of the board of directors (board members) of a PTA serve in a fiduciary capacity and owe a duty of care, a duty of obedience, and a duty of loyalty to the PTA. Board members shall conduct themselves with integrity and honesty and act in the best interests of the PTA. Disclosure by a board member of any potential or actual conflict of interest is required by the standard of good faith and for the benefit of the PTA and protection of each individual. All board members must abide by the following conflict of interest policy:

■ Board members and/or their families shall not use their relation to the PTA for financial, professional, business, employment, personal, and/or political gain.

■ A conflict of interest exists when a board member would have to participate in the deliberation or decision of any issue of the PTA while, at the same time, the board member and/or his or her extended family has financial, professional, business, employment, personal, and/or political interests outside the PTA that could predispose or bias the board member to a particular view, goal, or decision.

■ Board members shall declare to the officers of the PTA conflicts of interest (stating the nature of the conflict and pertinent information as appropriate) between their duties of the PTA and/or their extended families’ financial, professional, business, employment, personal, and/or political interests.

■ When a conflict of interest is declared, the board member shall not use his or her personal influence or position to affect the outcome of the vote and shall leave the room during deliberations and the vote.

■ The minutes of the meeting shall reflect that a conflict of interest was declared.


■ Board members shall not: ▪ Use PTA’s name, influence, or resources for their benefit or gain when running for any public

elected office or while serving as an elected official. ▪ Directly or indirectly use their current PTA position, the PTA name, or the organization for or

against any specific candidate for elected office, which is contrary to federal tax laws and the guidelines and policies of the PTA. (Past PTA experience may be listed in any brochures.)

An “Ethics/Conflict of Interest Policy” is located in the Utah PTA Presidents Handbook and on the Treasurer page of the Utah PTA website. Each PTA board should review this policy at the beginning of the year, obtain the appropriate signatures on the form, make a copy of the form for all signers, and submit the signed original to MemberHub by September 15.

PTA Funds vs . School Funds

All PTA monies belong to the association, and decisions about the disbursement of PTA funds must be approved by the general membership. Because the PTA is a private organization, PTA monies should never be commingled with the funds of any individual, the school, or another organization. All monies deposited in a PTA account, with the exception of the Utah PTA and National PTA portions of membership dues, will be considered to be PTA income by the IRS. The PTA should not allow school or other funds to “flow through” its checking account. If the PTA sponsors a project or program in cooperation with the school, all funds should be accounted for and separated prior to the immediate deposit of the PTA portion into the PTA bank account.

Each PTA’s approved budget includes only income and expenses that the association has approved. No other funds may be deposited into or paid out of the PTA accounts by the Treasurer unless the association has authorized the transaction by amending the budget. The Treasurer may be held personally responsible for unauthorized deposits or expenditures. This means that the PTA Treasurer must never deposit any non-PTA funds in the PTA accounts and never deposit any PTA funds in non-PTA accounts. This particularly applies to the school’s accounts. School funds are public monies and are spent in accordance with the school system’s budget. PTA funds are private monies, not controlled by the school system, and are spent in accordance with the association’s budget.

For an event to qualify as a PTA activity (that is, the funds generated belong to the PTA) all of the following criteria must be met:

■ If there was a contract involved, the PTA President must have signed the contract in accordance with the provisions of the bylaws.

■ The PTA must have been involved in the creation, planning, and implementation of the activity, and the PTA must have a properly structured committee for the activity and provide the majority of the staffing for the activity through volunteer PTA members.

■ The activity must have been approved by the PTA membership as a part of the PTA’s approved budget.

If the event does not or cannot meet these criteria, then the activity is not a PTA activity; the money raised at the activity does not belong to the PTA; and it may not be deposited in the PTA’s bank account. The corollary also applies: If the event does meet these criteria, the money raised does belong to the PTA.


School District Foundation Guidelines

Foundations, in most instances, are the fundraising arm of school districts. They are organized to receive tax-deductible donations, do fundraising, keep an accounting of individual school contributions, and disburse funds to schools for projects.

If a PTA has identified a substantial need at its school that will take considerable funds to implement, coordination with the school district foundation is recommended before embarking on a major fundraising campaign. The PTA can work with the foundation to have parents contribute directly to the foundation for the project and, if possible, apply for matching funds from the foundation.

Remember: PTAs are not in the fundraising business. Foundations are established to do this. PTA funds should always be used to further PTA’s Mission and Purposes. A PTA does not raise money to be diverted into other channels, such as providing support to other organizations or individuals, no matter how worthy.

■ The Region Director or designee may serve on the school district foundation board when invited by the foundation to do so.

■ The Region Director/designee acts as a liaison between the school district foundation and council/local PTAs: ▪ Serving as a resource by providing input and direction as to community and educational needs. ▪ Working with the school district foundation in the development of community-wide projects.

■ Local PTAs act as a liaison between the parents and the foundation: ▪ Identifying needs in their school/community (relaying this information through the Region

Director/designee). ▪ Informing parents of the function of a foundation. ▪ Informing parents of current foundation projects. ▪ Informing parents of current funding needs of the foundation.

■ Local PTAs may select fundraising projects suggested by the foundation.

■ PTAs may not fund raise for the foundation, although they may work with the foundation on specific PTA projects.


Annual Financial Reconciliation (AFR)

What?

■ An AFR report is not a bank statement or bank verification. It is a statement by the officers that their records are correct, or a reconciliation carried out and signed by an “auditor”.

Why?

■ An Annual Financial Reconciliation (AFR) is required by PTA bylaws: “The books of the Treasurer shall be examined annually…” (Article VII, Section 6).

■ “An AFR of the Treasurer’s accounts is for the protection of the Treasurer…it relieves the Treasurer of responsibility except in case of fraud.” (Endnote 4).

■ An AFR provides for accountability to the PTA membership. “It is the only means of assuring everyone that the accounts are accurate” (Endnote 4).

Who?

■ “…by an auditor or an AFR committee of not fewer than three (3) members…” (Article VII, Section 6).

■ “Members of the AFR committee shall be members of this PTA/PTSA” (Article VII, Section 6a).

■ “…appointed by the executive committee at least two (2) weeks before and announced at the annual meeting” (Article VII, Section 6a).

■ “…shall not be any officer who may sign the checks or be related to, by blood or by marriage, or reside in the same household with, any of the officers who may sign the checks…” (Article VII, Section 6b, emphasis added).

■ An AFR committee would perform an “internal AFR,” following Utah PTA’s recommended internal AFR procedure (found on pages 26, 46-47 and 77-79 of this handbook) . An outside auditor is not required to perform an AFR “in accordance with generally accepted auditing standards.” “Agreed-upon procedures” (based on the recommended internal AFR procedure) or a “review” is sufficient to fulfill the requirement. A professional auditor who is a member of the PTA could perform an “internal AFR” such as would be performed by an AFR committee.

■ The qualifications of an auditor are not specified by the bylaws. Consider the following in selecting auditors: ▪ Familiarity with PTA and its activities ▪ Accounting and/or auditing experience, preferably with non-profit organizations ▪ Diligence and commitment ▪ Honesty and fairness ▪ Availability ▪ Does NOT have to be a member of the PTA being audited.

Information


When?

■ Financial records should be put in order for the AFR process shortly befoe the end of the fiscal year. (PTA Finance Quick-Reference Guide, National PTA). ▪ The fiscal year is July 1 to June 30. ▪ The outgoing Treasurer should strive to have all transactions completed as early in June as

possible. For local PTAs on a traditional calendar, this should be fairly easy. Those on a year-round calendar will have more difficulty, but adequate planning can minimize the number of “last minute” transactions.

▪ Once the books are closed for the AFR, the outgoing Treasurer may not complete additional transactions. In no case should the outgoing Treasurer make deposits or write checks after June 30!

▪ Outstanding bills are common and can be paid by the incoming Treasurer on or after July 1. ▪ By way of summary, no transactions should occur between the time the books are closed for AFR,

which will be no later than June 30, and the time the incoming Treasurer begins transactions, which will be no earlier than July 1.

How?

■ Once the financial records are put in order–including the preparation of a Year-end Financial Statement–the Treasurer shall deliver them to the AFR Committee.

■ The following items will be needed to conduct the audit: 1. Copy of last audit report2. Year-end financial statement and monthly Treasurer’s reports3. Bank statements and reconciliation reports—including June 30, if at all possible4. General ledger, or transaction report, organized by category5. Check register6. Funds received forms, with supporting documentation7. Check request forms, with supporting documentation8. Copies of meeting minutes, including the approved annual budget, as well as any amendments

that were approved during the year9. Current membership list

10. Current bylaws (and standing rules, if any)11. Any other information requested by the auditor/AFR committee

■ The June 30 bank statement should be included in the materials given to the auditor, if at all possible.

■ “The auditor or AFR committee shall submit its report to the new executive committee no later than August 1” (Article VII, Section 6d). ▪ Make sure that the AFR report has been signed and dated by the auditor/AFR committee. ▪ Consider also keeping AFR “working papers” (such as an AFR procedure checklist and

suggestions for improving financial policies and procedures) with the records audited.

■ The year-end financial statement and the AFR report should be submitted to MemberHub no later than August 1.


■ “The [AFR] report shall be presented for adoption at the first general membership meeting of the new school year” (Article VII, Section 6d). It makes sense to present the related year-end financial statement at the same time. The motion to adopt the AFR report is made as follows: ▪ The Treasurer could make the motion: “I move that the AFR report be adopted as presented.” ▪ If the motion comes from the budget or finance committee, no second is required. Otherwise,

there needs to be a second. ▪ The President asks: “Are there any (further) questions about the AFR report?” ▪ After questions, if any, the President calls for the vote: “If there are no (further) questions, we

will take the vote on the motion to adopt the AFR report as presented. All in favor, please say aye. All opposed, say nay.”

▪ The President then reports on the result of the vote: “The motion to adopt the AFR report has passed (failed).”

■ The AFR should be filed with the PTA’s permanent records, with a copy placed in the subsequent year’s file.

Trea

sure

r The Processes


The Treasurer’s term of office begins on July 1, but he or she should start “transitioning” right after being elected to serve. Both the outgoing and incoming officers are responsible for an effective and efficient transition between fiscal years.

According to Article VIII, Section 3 of “Local PTA/PTSA Bylaws,” during the transition period between their election and June 30, the incoming officers shall meet as needed to coordinate with the outgoing officers, prepare for their term of office, formulate their tentative plans and proposed budget, schedule their calendar, coordinate with the principal, and, if applicable, select commissioner and committee chairs and shall attend the Utah PTA convention in May. The incoming officers shall assume no financial responsibilities nor obligations until July 1.

The Outgoing Treasurer is Responsible For…

Preparing a Year-end Financial Report and seeing that an Annual Financial Reconciliation (AFR) of that statement and the related records is completed.

■ The books should be closed no later than June 30. No transactions should occur between the time the books are closed for AFR, which will be no later than June 30, and the time the incoming Treasurer begins making transactions, which will be no earlier than July 1.

■ Both the financial statement and the AFR report are to be submitted to the new executive committee and to the council no later than August 1. Each council will set its own procedures for submission of these reports, possibly involving transition training before or during the transition period and/or small group meetings with outgoing and incoming Presidents and Treasurers.

■ The financial statement and AFR should be presented for adoption at the first general membership meeting of the new school year.

Preparing a Sales Tax Refund Request form for the period January 1 to June 30. This form is due on MemberHub by August 1 (unless the unit only submits for a refund once a year - by February 1). Preparing the applicable IRS filing—either Form 990EZ and related schedules, if required, or Form 990N.

■ All PTAs in Utah are required to make an annual filing with the IRS.

■ PTAs that have gross receipts (all funds received from all sources, except dues forwarded to Utah PTA and National PTA, including gross income from fundraisers) that are “normally more than $50,000” are required to file Form 990EZ (including the applicable schedules).

■ All other PTA units (local, council, and region) will file Form 990N, also known as the e-Postcard.

■ A PTA can, of course, complete its filing any time following the completion of the AFR after July 1. Utah PTA recommends that Form 990N be filed by August 1 and requests that Form 990EZ be submitted to Utah PTA by September 1.

Transition Period


■ Form 990EZ and related schedules are available at www.irs.gov. Completed forms should be mailed to Utah PTA – not directly to the IRS.

■ Form 990N (the e-Postcard) is filed electronically at www.irs.gov/990n. Only basic information is required on the form. You must sign in again after the recommended waiting period to receive the accepted status before printing the acceptance form. A copy of the accepted 990N from the IRS needs to be submitted to MemberHub.

An Incoming Treasurer’s Checklist: Have I …

received the training I need to fulfill my responsibilities as Treasurer? Utah PTA’s Leadership ... Convention is held in May. Council and/or regions will schedule post-convention training and/or field service training subsequent to the convention.

?made note of the duties of the Treasurer and other financial requirements per the PTA bylaws ... The bylaws should be reviewed by the executive committee at the beginning of each year. The Treasurer should keep a copy of the bylaws in the current year’s financial file and/or binder.

begun my responsibilities as chair of the budget committee? Sources of information to create the ... proposed budget include needs assessments, input from each commissioner and/or chairperson, and prior years’ financial records. Once the proposed budget is approved by the board, it must be approved by the membership at the first general membership meeting (prior to September 15).

taken custody of the checkbook by July 1 and the prior year’s financial records by August 1. The ... incoming Treasurer can begin writing checks and making deposits on July 1, even if the AFR has not been completed. Expenditures should be limited to those of a routine or emergency nature until the budget is approved by the general membership.

had the signature card at the bank changed, effective July 1. At least three unrelated, elected ... officers should be authorized to sign on the account: the Treasurer, the President, and generally the Secretary and/or the President-elect. (Note: The bank may require an outgoing officer to initiate this change.)

?set up a current year’s financial file and/or binder ...

made sure that a ten-year file and a permanent file of financial records are retained and stored in ... a safe place, at the school if possible? (To find what is included in these files, see page 31)


Each Treasurer should set up and maintain a current year’s financial file or binder. This file should contain the following items:

■ Copy of current bylaws

■ Copies of prior year information ▪ Year-end financial statement ▪ AFR (Annual Financial Reconciliation) report ▪ IRS filing

■ Minutes of meetings

■ Budget information

■ Copies of Utah PTA paperwork ▪ “Basic Fiscal Management Procedures” ▪ “Ethics/Conflict of Interest Policy”

■ Treasurer’s reports

■ Bank statements with related reconciliation reports

■ General ledger and check register ▪ Organized by budget categories (and subcategories, as appropriate) ▪ Maintained manually or using computer software ▪ Used to track detail of transactions and to facilitate preparation of Treasurer’s reports

■ Supporting documents for all financial transactions ▪ Receipts, organized chronologically ▪ Disbursements, organized chronologically—in check number order

■ Membership records

■ Sales tax refund request forms

■ Grant agreements, if applicable

What to FileCurrent Year Files


It is important that certain records be kept beyond the current year. It is strongly recommended that the Treasurer establish a record retention policy and maintain a ten-year file and a permanent file that could be kept at the school, with the permission of the principal. Here are some items that should be retained. Each Treasurer should review the files annually and shred those records no longer needed.

For Ten Years

■ Budgets

■ Treasurer reports

■ Cash receipts records, including funds received forms

■ Bank statements

■ Disbursement records, including check request forms with invoices, receipts, etc. with sales tax information

■ Contracts and leases (expired)

■ Grant award letters of agreement

■ Sales tax refund request forms

Ten-Year Files

Permanent FilesIn the Permanent File

■ AFR (Annual Financial Reconciliation) reports and related year-end financial statements

■ Bylaws, including all amendments

■ Contracts and leases still in effect

■ Legal correspondence

■ Insurance records, accident reports, claims, policies, certificates

■ National PTA unit identification number

■ Minutes of board and committee meetings

■ Standing rules (current)

■ Tax-exempt status documents ▪ Letter from IRS assigning EIN ▪ Determination letter ▪ Form 990EZ and related schedules, if required, or Form 990N ▪ Form 990T, if applicable, for unrelated business income ▪ Correspondence with IRS


The PTA should maintain one checking account with one checkbook for PTA funds. The checking account may be an interest-bearing account. The Employer Identification Number (EIN) issued by the IRS must be given to the bank and listed on the PTA checking account. The EIN assignment letter should be part of the PTA’s permanent records. An individual’s social security number should never be used on a PTA checking account. When the PTA updates the signature card, the EIN should be verified. If there is any discrepancy, contact the Utah PTA office. Utah PTA will furnish a letter, if needed, to the bank to make necessary changes in the EIN.

Two (2) signatures are required on all PTA checks. There must be at least three (3) people authorized to sign on the checking account: the Treasurer, the President, and generally the Secretary and/or the President-elect. These people should not be related by blood or marriage, or reside in the same household. If the Treasurer is related to one of the other officers, the Treasurer is always on the signature card and another officer, unrelated, would be added. If the President and Treasurer are related, the President should not be on the signature card but should sign all check request forms before the Treasurer issues a check.

A PTA is permitted to have a savings account for its reserve funds. If the balance in the savings account becomes too large, it may become necessary to look closely at the purpose of the PTA’s fundraising.

The purpose of the PTA is never to become the fundraising arm of any organization or to accumulate large sums of money.

Banking services should be reviewed every fiscal year. It is permissible for a PTA to bank with a traditional bank or a credit union. Services vary at each institution and factors involved in the decision where to bank should include the proximity to the school, the bank’s hours, after hours deposit policy and banking fees. The decision to move from one institution to another should be a board decision and documented in the minutes of the board meeting.

In recent years, banking services have changed. Bank accounts are being accessed by debit cards as well as via the Internet. Because of the volunteer nature of PTA, the turnover of officers, and the necessity of maintaining an accurate paper trail, PTAs should avoid the use of debit cards and limit Internet banking services to “read only” options only.

Utah PTA and National PTA advise that if your PTA’s current environment has weak business processes resulting in poor internal controls, this must be addressed prior to or in conjunction with transitioning to an electronic environment. Taking weak and ineffective business processes and moving them to an electronic environment will only make matters worse quickly. The need for complete and accurate documentation is more important in an electronic environment. The need to recognize, research, respond to, and correct a problem is time sensitive in the electronic realm. (Source www.ptakit.org/Finance). Documentation regarding the change should be filed with your financial records and the changes should be approved by the PTA membership.

Banking


PayPal

Many PTAs are now considering using other electronic conveniences such as PayPal. For example, T-shirt orders can be placed and PayPal used as the payee. The invoice is sent to the PayPal account for payment. After logging into the PayPal account, the invoice can then be approved for payment. The person confirming the payment through PayPal can approve payment using digital cash, a credit card, or other EFT options. A few items to think about:

1. Is the benefit worth the cost? There is a cost in the time involved in setting up the account as well as transaction fees. If you think that using PayPal would result in substantial increased donations then it is worth the cost. If it will bring in one or two more than you would have received via check or cash, then probably not.

2. A PTA PayPal account should be directly linked to the PTA bank account. A PTA should never use someone’s personal or business account for PTA purposes.

3. PayPal transactions require the same documentation as other monies received including the purpose and source of the money. It might be helpful if someone other than the Treasurer (ex. Secretary) be responsible for maintaining the paperwork and the Treasurer be responsible to review the documentation and make the download from PayPal if all is in order. This maintains an additional check and balance system.

Make sure that your PTA Board approves this method of accepting funds and it is documented in the minutes that it was approved so there is no appearance of one person being in charge of the money and possibly using it for personal or business purposes.

Venmo Policy

Until Venmo supports non profit or group accounts, Utah PTA asks that you don't use Venmo. Reports have been received of Venmo freezing accounts or reversing charges on unauthorized business accounts. A group Venmo account is in beta testing and Utah PTA will update you with new guidelines once they release it.

MemberHub Store

MemberHub provides an easy to use store for each PTA. You can sell memberships, school gear, tickets, donations, and fundraising items in your MemberHub store. MemberHub partners with WePay, a Chase Bank owned company, to process transactions. Each online transaction has a 3.5% + $0.50 fee. You can decide if you pass the fee on to the purchaser or absorb it by your PTA. For more information about setting up your online MemberHub store, see support.MemberHub.com.


Bank Statements

The monthly bank statement should be mailed to the PTA at the school address. When the bank statement arrives, a designated Board member (who is not a signer on the account) should immediately review it, initial it and then give it to the President to review and initial. Then it will be given to the Treasurer to reconcile.

The bank statement must be reconciled by the Treasurer in a timely manner. There is a sample form in Appendix 2 of this handbook, which outlines the reconciliation process. The bank statement usually has a form on the back that can be used for this purpose. Those PTAs using accounting programs to maintain their records should utilize the reconciliation function of the program. Once the Treasurer has reconciled the bank statement, this report is then taken to the board meetings for the Board to approve.

Accepting Credit Cards

Many PTAs are taking credit cards for membership and for fundraising items. Utah PTA requires the following guidelines to be met:

1. Check with your Region Director to find out if your school district has a policy for or against PTAs using credit cards in their school. We must always follow district guidelines as we are guests in their schools.

2. Local PTAs should NOT accept credit cards unless there are at least three check signers and Utah PTA strongly suggests they are bonded board members. (Bonding can be purchased for around $100.00 a year and will cover any board member who handles money, up to $10,000 through AIM Insurance, a Sponsor of Utah PTA) There are also other Insurance companies that offer the same services.

3. Local PTAs must follow proper procedures as a board by:A. Holding monthly board meetingsB. Giving a verbal Treasurer’s report at each board meetingC. Reconciling bank statements monthlyD. Taking minutes at every board meeting and printing them out for the next meetingE. Adhering to all internal controls and financial guidelines in the Treasurer's Handbook

4. The Board needs to vote to begin accepting credit cards for the first time. It must be made as a motion at a board meeting where a quorum is present, it must be voted on and it must be recorded in the minutes.

5. Open an email account only used for the PTA ([email protected]) Give access to all executive members to check the email account at all times.

6. Open the account with the Credit Card Company (ie: Square, PayPal, intuit, etc.)A. Use the email that you opened for the PTA for this account.

7. Print out payment notification emails or a statement and attach to a Funds Received form to account for funds transferred into the account.

8. Have a non-signing board member reconcile the account first, then the President, then the Treasurer.

9. Show in EVERY BOARD MEETING a Treasurer Report just for this account.


It is an unfortunate fact that non-profit organizations are susceptible to fraud. One of the most important things that you can do for the well-being of your PTA unit is to implement and follow a system of internal controls. Good internal controls guard against both errors (unintentional mistakes) and irregularities (deliberate attempts to misuse or misappropriate the assets of the PTA.)

Do You Have These Basic Controls in Place?

■ The Treasurer maintains custody of the checkbook at all times.

■ Supporting documentation is required for every disbursement made.

■ Checks are issued in number sequence order.

■ All checks have two signatures—the Treasurer, except in an emergency, and one additional signer, preferably the President.

■ There are no blank checks with a signature(s)!

■ Under NO circumstances should a check ever be written to cash.

■ Detailed supporting documentation is maintained for every deposit made.

■ Three people are present for all counting of cash (membership drive, book fair, fundraiser, etc.).

■ All money received is deposited the same day, using the bank’s night depository for events concluded after banking hours.

■ Bank statements (and other bank correspondence) are mailed to the school address in care of the PTA.

■ Bank statements are reconciled to check registers in a timely manner.

■ There are not ATM, debit cards, or credit cards connected with PTA accounts.

■ The Treasurer prepares and presents a Treasurer’s report at each general membership meeting and at executive committee and board meetings as deemed appropriate.

A “PTA/PTSA Basic Fiscal Management Procedures” form is located in this handbook on pages 114-121. It can also be found in the Utah PTA Presidents Handbook and the Treasurers page on the Utah PTA website. Each PTA board should review these procedures at the beginning of the year, obtain the appropriate signatures on the form, make a copy of the form for all signers, and submit the signed original through MemberHub by September 15th.

Internal Control Systems


One of the duties of the Treasurer is to develop, with the executive committee, an annual budget to be approved by the local PTA membership at the first general membership meeting of the year. The budget is the PTA’s road map for the year. The budgeting process should be taken seriously. However, it does not need to be complicated.

The Treasurer is the chair of the budget committee. The President is a member of the budget committee, as are other elected officers or general members as either elected or appointed by the President. The budget committee will develop the budget and then propose it to the entire executive committee for their approval, after which it will be presented to the general membership for their approval.

Developing the Budget

The budget committee should begin the budgeting process during the transition period, after the new officers have been elected. The goals of the PTA for the year should be established first, and then decisions can be made about how to raise the needed funds. To create a budget proposal, the following information should be considered:

■ Prior year financial records ■ Needs assessment results ■ Input from each commissioner and/or program chair

The estimated expenses of every program, project, and activity should be determined, along with any anticipated related revenue (for example, with a book fair). The budget should also include general and administrative costs, especially for leadership training (such as the Utah PTA Leadership Convention). Sources of revenue will include membership dues (local portion only) and contributions, as well as fundraising projects. Both

the funds carried over from the previous year and the amount of money to be carried over to the subsequent year should be identified.

A Proposed Budget Worksheet, located in Appendix Two: Tools, may be helpful in this process.

The budget should be general and flexible enough to meet the changing needs of the PTA. Establishing categories for both

CurrentBalanceForwardfrom2014 $7,059.00

INCOMEFundraiser $10,250.00Membershipdues $525.00Schoolt-shirts $200.00BoxTops $600.00Donations $1,000.00SalesTax $250.00

TOTALINCOME $19,884.00

EXPENDITURESCommunityInvolvement

TeacherAppreciationWeek $750.00PTCDinners $575.00VolunteerLuncheons $100.00

EducationKindergartenOrientation $50.00ARProgram $950.00Readingawards $1,000.00

FamilyLifeFather-Sonnight $600.00Mother-Daughternight $600.00FallCarnival $1,200.00GrandparentsDay $250.00

HealthMaturation $200.00PhysicalFitnessAwards $800.00HealthFair $200.00

SafetyRibbonWeeks $800.00DARE $250.00

GeneralandAdministrativeLeadershipTraining $400.00ValentineTreats $250.00BankCharges $120.00MembershipDrive $100.00Supplies $450.00

TOTALEXPENDITURES $9,645.00

BALANCETOMOVEFORWARD $10,239.00

SamplePTABudgetProposedBudget

20___-20___

CurrentBalanceForwardfrom2014 $7,059.00

INCOMEFundraiser $10,250.00Membershipdues $525.00Schoolt-shirts $200.00BoxTops $600.00Donations $1,000.00SalesTax $250.00


EXPENDITURESCommunityInvolvement $1,475.00Education $1,950.00FamilyLife $2,650.00Health $1,200.00Safety $1,050.00GeneralandAdministrative $1,320.00

TOTALEXPENDITURES $9,645.00

BALANCETOMOVEFORWARD $10,239.90

SamplePTABudgetProposedBudget

20___-20___

Budgeting


revenue and expenses is recommended, individually listing only those items greater than ten percent of the total budget. Budget categories can be organized by commission, with more detailed information for executive committee use only. The PTA may consider including a phrase such as “Revenues received in excess of budgeted amounts will be carried over to the subsequent year” on the budget.

Approving the Budget

Once the proposed budget is approved by the executive committee, it must be approved by a majority vote of a quorum of the membership at the first general membership meeting (such as Back-to-School Night). The number needed for a quorum can be found in your bylaws and is usually at least 10 members. The Treasurer might present the budget item by item, either by distributing a copy of the proposed budget to each member or projecting it on an overhead or via computer at the meeting. Members should have the opportunity and the time to ask questions before voting on the proposed budget. The motion to approve the budget is made as follows:

■ The Treasurer could make the motion: “I move that the budget be approved as proposed.”

■ If the motion comes from the budget committee, no second is required.

■ The President asks: “Are there any (further) questions or discussion?”

■ After discussion and questions, the President calls for the vote: “If there is no further discussion, we will take the vote on the motion to approve the budget as proposed. All in favor, please say aye. All opposed, say nay.”

■ The President then reports on the result of the vote: “The motion to approve the proposed budget has passed (failed).”

A majority vote of the general membership is required for approval, with at least a quorum in attendance as specified in the bylaws. (Most local PTA bylaws specify that ten members constitutes a quorum; see Article IX, Section 8.) The Secretary must take minutes at this meeting to document the approval of the budget. A copy of the approved budget and the minutes of the general membership meeting where it was approved must be submitted to the Council President/Treasurer or Region Director/Treasurer by September 15.

The approved budget gives the board of directors authorization to spend the PTA’s funds in accordance with that budget. Committees and committee chairs receive authorization to proceed with a project or to spend funds from the board of directors. No committee or committee chair should ever obligate the PTA to a program, project, or activity—or any obligation, financial or otherwise—without the approval of the board of directors. No officer is authorized to spend funds that have not been approved by the membership. All expenditures must have been approved through the budgeting process.


Amending the Budget

Because the budget is only an estimate or approximation, it is likely that changes will be necessary during the year. (For example, if a fundraiser is more or less successful than anticipated or if a situation or opportunity arises that had not been considered when the original budget was created.)

Changes or amendments to the budget during the year must be approved by a vote of the membership. PTA funds belong to the membership. No other group or individual–including the President, the Treasurer, the executive committee, the school principal, and the school community council–may make financial decisions alone.

Any substantial change (10%) to the budget must be approved by a two-thirds vote of a quorum of the membership (or a majority, if prior notice of the vote was given).

■ The amendment must occur prior to any additional funds being disbursed.

■ The vote may be taken at any regular general membership meeting or at a special meeting called for that purpose.

■ The number of members required for a quorum is defined in the Bylaws.

The motion to amend the budget is made as follows:

■ The Treasurer could make the motion: “I move that the budget be amended to… “ (e.g., add $100 to Health & Safety; transfer $175 from Education to Individual Development; provide that the $3000 in fundraising revenue received in excess of the budgeted amount be carried forward to the 2015-2016 fiscal year).

■ Unless the motion comes from committee, a second is required: “I second the motion.”

■ The President asks: “Are there any questions or discussion?”

■ After discussion and questions, the President calls for the vote: “If there are no further questions, we will take the vote on the amendment to [read the original motion]. All in favor, please say aye. All opposed, say nay.”

■ The President then reports on the result of the vote: “The proposed amendment to the budget has passed (failed).”


Carryover or Reserve Funds

Emergency reserve funds are considered an integral part of each PTA’s planning and budgeting process. An emergency reserve fund is intended to serve as a means to retain financial stability in the event of unforeseen developments. Maintaining a small savings account and/or carryover balance will allow for efficient management of funds as well as provide funds to carry on programs until the next opportunity for revenue.

The amount of the carryover or reserve fund will vary according to each PTA’s size and needs. National PTA has suggested that the reserve not exceed one-half of a PTA’s budget for an average year, but each PTA can establish its own policy. No IRS regulation or other federal law specifies a carryover limit.

If the revenue sources for one year bring in more money than was anticipated, it can readily be carried forward, giving the next year’s officers the opportunity to have limited fundraising or even no fundraising at all. No one has the authority to write a check to the school or anyone else for unbudgeted items to “clean out” the PTA account. The purpose of fundraising is to run PTA programs; the PTA is not the fundraising arm of the school.

PTAs without a sufficient carryover or reserve fund should work to build one over time.

Board Designated Funds

PTAs will sometimes identify projects for which it is necessary to accumulate funds over a period of time or for which it wants to allocate funds in order to maintain the project. In such cases, the board should vote to designate a specified amount of carryover money be set aside for a specific purpose. For example, a motion could be made that “Sample High PTSA set aside $___ of carryover funds to finance the continuation of the _______ project next year.” It is recommended that the motion approving the designation also be voted on by the general membership.

Generally, such a designation will only be effective when there is continuity in the leadership. The future board(s) will decide whether or not to continue the designation. There is no time limit on how many years funds can be carried forward, as long as the membership approves raising funds for the project each year.


The Treasurer has the responsibility to ensure that all funds going in and out of the PTA’s bank accounts are accurately recorded on the PTA’s books. It is recommended that funds received forms and check request forms be used to maintain adequate documentation of all transactions.

Receipts

Detailed supporting documentation should be maintained for every deposit.

■ Use of the Funds Received form provides this documentation. (See a sample form in Appendix 2.) The source(s) of revenue (e.g., memberships, T-shirt sales, fundraiser, sales tax refund) and any other pertinent information should be noted on the form, and any supporting documentation available should be attached to the form.

■ The person, often an event or program chair, who completes the funds received form should give it promptly to the Treasurer, who will prepare the deposit. A copy of the completed deposit slip (which will show the date and the total amount of the deposit) and the checks to be deposited might also be attached to the form.

■ Deposits should be numbered, and deposit receipts (from the bank) should be attached to the funds received forms.

■ Funds received forms should be maintained with the financial records.

Three people should be present for all counting of cash (membership dues, book fair receipts, fundraising activities, etc.). It is recommended that the Treasurer be one of the three people, whenever possible. The others can be members of the executive committee, event or program chairs, or other PTA volunteers who have been trained in the appropriate procedures.

■ Money counting sheets, with three signatures, should be used. (See a sample form in Appendix 2.)

■ Counting sheets should be attached to funds received forms, utilizing one set of counting sheets per deposit so that the count agrees to the amount of the deposit.

All money received should be deposited the same day.

■ Two people should take the deposit to the bank.

■ Money should never be taken home or left at the school overnight.

■ The bank’s night depository can be used for events concluded after banking hours. (A key can be obtained from the bank or the bank bag picked up the next day.)

■ Preparing deposits periodically throughout a lengthy event, such as a book fair, will minimize the time required at the conclusion of the event.

Receiving and Disbursing Funds


Disbursements

A PTA check should never be written without a completed Check Request form.

■ The form should include the date, the payee of the check, the amount, the purpose, as well as a place for the check number.

■ It is highly recommended that the form also provide a place to track the amount of sales tax paid.

■ A sample check request form is located in Appendix 2.

■ Receipts and/or an invoice (or other supporting documentation) must be attached to the form.

■ The person submitting the request should sign it, and the President and the Treasurer will also sign the form, indicating their approval of the disbursement.

■ The principal signs each check request. He is not approving the check request, but acknowledging that he is aware of each transaction.

All PTA expenses must be paid with a PTA check, either issued for the original expenditure or as a reimbursement to an individual for expenses he or she has personally paid. Sales tax refund requests can only be made for expenses paid by a PTA check. Petty cash systems should not be used. The following rules govern issuance of PTA checks:

■ All PTA checks must be signed by two (2) authorized officers: the Treasurer, except in an emergency, and preferably the President. The signers may not be related by blood or marriage, nor reside in the same household.

■ Neither the Principal nor the Teacher Vice-presidents should sign PTA checks to avoid any possible conflict of interest.

■ Checks should only be issued after a check request form is completed.

■ Receipts must be attached to check request forms.

■ A blank, signed check should never be given to anyone.

■ When the PTA membership approves funds to be given to the school, it is preferable that the PTA pay bills directly. The school can also be reimbursed for specific purchases made for the PTA within the approved budget; copies of purchase orders and/or itemized receipts should be provided to the PTA. If direct payment or reimbursement is not possible, the funds should be given to the school in the form of a grant. A written grant agreement between the PTA and the school should be signed by the PTA President and Treasurer and the school Principal. The agreement should specify the amount of money to be granted, the purpose for which it is to be used, the date by which it is to be spent, and statements that the school will provide an accounting of the funds to the PTA and that unused funds will be returned to the PTA. (See Appendix 2 for a sample grant agreement.)

All transactions should be recorded in the check register in a timely manner. A ledger system should also be established whereby a written record is maintained of revenue and expenses by category, as outlined on the budget. Samples of a manual ledger system are located in Appendix 2. Computer programs may also be used to record transactions and are generally easier and quicker to use after the initial set-up time.


Cash Box Instructions

The Beginning Cash Box Balance Form is in Appendix 2 of this handbook . It can also be found at www .UtahPTA .org/Treasurer

1. Complete a Check Request Form for the beginning cash box amount (to document check.)

2. Write a check out to the chair person of the event for the beginning cash box balance.

3. Give the check to the chair person, instruct them to cash the check at their bank and bring the cash to the event. Have chair person give you the check’s cashed receipt from bank, if the bank provides one. Attach the receipt to the Check Request Form.

4. Have someone other than the chair person verify and document the beginning cash box balance on the Money Counting Sheet.

5. Before depositing the proceeds from the event, make sure the cash box start balance is removed from the income of the event and, when deposited, document it as Cash Box Re-deposit and not as actual income from your event.


The Treasurer is responsible for making regular financial reports to the PTA officers and to the membership of the PTA.

■ The PTA officers have a fiduciary responsibility to know the current financial status compared to the budget approved by the membership.

■ The PTA membership needs to know how their money is being handled compared to the budget they approved.

■ The PTA officers and members need to know if there are sufficient funds available to meet the goals set.

Treasurer’s Report Information

At each meeting of the board of directors and at each general membership meeting, the Treasurer should present a report giving the financial status of the unit. This report should include at least the following items:

■ Balance from the last report ■ Income since the last report, e.g., dues, fundraising event, book fair ■ Expenses since the last report ■ Current account balance

This report should be made available for any interested officer or member to see where the PTA money is coming from and how it is being spent. Remember that the budget was approved by the PTA membership, and they have the right to see whether the board is spending within those guidelines. When the membership can see that the PTA board is trying to follow the budget guidelines, there will be fewer complaints about the handling of the PTA money. More information about the Treasurer’s report can be found in Appendix 2. It is advisable that three copies be retained: one for the President, one for the Secretary to be filed with meeting minutes, and one for the Treasurer to keep on file for the AFR (Annual Financial Reconciliation—formerly audit).

A budget analysis can be a very useful form of the Treasurer’s report. This report shows a comparison of what was budgeted, the actual expenses and income, and the difference between the two. It gives, at a glance, a detailed accounting of how the PTA is using the money and can show where there are any problem areas in the budget.

Year-End Financial Statement Information

The year-end financial statement is prepared by the Treasurer at the end of the PTA fiscal year (June 30). It is a detailed report of actual income and actual expenses for the entire PTA year (July 1 - June 30). This report is the means by which the PTA members are informed of the financial situation of the PTA for the past year. This information should be easily obtained from the ledgers for the year or from the monthly Treasurer’s reports. This year-end financial statement must be given to the incoming PTA officers by June 30 and is submitted with all the Treasurer’s records for AFR. The new officers will present the year-end financial statement with the AFR report to the membership at the first general membership meeting of the new PTA year (usually Back-to-School night).

Reporting

Samples and Report Forms are in Appendix 2 of this handbook as is a Year-End Financial Statement form . They can also be found at www .UtahPTA .org/Treasurer


The AFR Procedure is as Follows:

1. Agree beginning balance (July 1) to ending balance (June 30) on previous audit report and on June 30 bank reconciliation.

2. Check year-end financial statement and monthly Treasurer’s reports for accuracy.

3. Review final bank reconciliation (preferably June 30), noting deposits pending and checks outstanding.

4. Verify that all income and expenses listed on the year-end financial statement were included in the approved budget.

5. Perform a sample test of transactions. The size of this sample should be based on the size of the organization. If discrepancies are found, the sample should be broadened to take in more transactions. At some point, it may be deemed necessary to audit all the transactions of a PTA. Testing should include the following areas:

▪ Tracing entries in general ledger and/or check register to Treasurer’s reports.

▪ Reviewing monthly bank reconciliations, investigating any unusual or unexplained reconciling items.

▪ Examining canceled checks for two signatures and, if possible, appropriate endorsements.

▪ Tracing deposits made to cash counting sheets and deposit slips, noting timeliness of deposits based on known dates of events.

▪ Tracing checks paid to check request forms, noting appropriate authorizations and supporting documentation.

6. Reconcile membership dues income to membership reports by agreeing number of members to amount recorded as income (# of members x local portion of membership dues amount). Make certain that Utah PTA and National PTA portions of membership dues receipts (amounts not belonging to the unit) have been remitted through MemberHub in a timely manner. If applicable, make certain that the council PTA dues have also been remitted through MemberHub in a timely manner.

7. Verify that any money collected for a specific purpose has been disbursed for that purpose.

8. Check that refunds have been requested through Utah PTA for all sales tax paid during the year.

Annual Financial Reconciliation (AFR)Procedure


AFR Report

The auditor/AFR committee must issue a written report once they are satisfied that the records are accurate. Any errors found should be corrected. (Samples and forms are located in Appendix 1.) To be meaningful, the report should include three parts:

1. A summary of beginning balance to ending balance for the fiscal year, showing gross receipts and gross disbursements.

2. A reconciliation to the bank statement balance as of June 30.

3. A statement of the results, signed by the auditor/AFR committee.

The auditor/AFR committee must also issue a report in the event that there are not adequate records to conduct appropriate AFR procedures. A sample statement might read, “The AFR committee has examined the records of the Treasurer of _______PTA and found that more adequate accounting procedures need to be followed so a more complete AFR report can be issued.” The AFR committee should indicate the information that is needed.

At any time during the AFR process, your Council President, Treasurer or Region Director, Treasurer may be contacted for information or assistance.

The AFR Procedure Checklist and Report form are in Appendix 1 of this handbook . They can also be found at www .UtahPTA .org/Treasurer

Annual Financial Reconciliation (AFR) Procedure Checklist

It is recommended that this checklist be filed with the audit report in the permanent file.

Agreebeginningbalance(July1)toendingbalance(June30)onpreviousauditreportandonJune30bankreconciliation.

Checkyear-endfinancialstatementandmonthlytreasurer’sreportsforaccuracy.

Reviewfinalbankreconciliation(preferablyJune30),notingdepositspendingandchecksoutstanding.

Verifythatallincomeandexpenseslistedontheyear-endfinancialstatementwereincludedintheapprovedbudget.

Perform a sample test of transactions:

Reviewmonthlybankreconciliations.

Examinecancelledchecksfortwosignaturesand,ifpossible,appropriateendorsements.

Tracedepositsmadetocashcountingsheetsanddepositslips.

Trace checks paid to check request forms, noting appropriate authorizations and supportingdocumentation.

Reconcile membership dues income to membership reports:

Reconcile number ofmembers to amount recorded as income (# ofmembers x local portion ofmembershipduesamount).

MakecertainthatUtahPTAandNationalPTAportionsofmembershipduesreceipts(amountsnotbelongingtotheunit)havebeenrecordedseparatelyfromotherreceiptsandremittedtoUtahPTAinatimelymanner.

Ifappropriate,makecertainthatcouncilPTAmembershipdueshavealsobeenremittedtothecouncilPTAinatimelymanner.

DeterminewhetherrefundshavebeenrequestedthroughUtahPTAforallsalestaxpaidduringtheyear.

NOTE:AcopyoftheAFRreportmustbesubmittedtothecouncil/regionnolaterthanAugust1.TheAFRreportmustbeofficiallyadoptedbythePTA’smembershipatthefirstgeneralmeetingofthenewfiscalyearandfiledintheunit’spermanentfile.

Utah PTA - Treasurer - Annual Financial Reconciliation (AFR) : Procedure Checklist

Name of PTA: _____________________________________________ Date: ____________________

Council: __________________________________________________ Region: __________________

Balance on Hand as of July 1 (should agree to prior year report) . . . . . . . . . . . . . . .$ ______________(1)

Receipts (total deposits from July 1 to June 30) . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ + ______________(2)

Total (add lines 1 and 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ = ______________(3)

Disbursements (total checks written from July 1 to June 30) . . . . . . . . . . . . . . . . . .$ - ______________(4)

Balance on Hand as of June 30 (checkbook or ledger balance) . . . . . . . . . . . . . . . .$ = _______________(5) This balance should agree with line 9.

Bank Balance as of ______________ (date of most recent bank statement) . . . . . .$ ______________(6)

Checks Outstanding (subtract from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ - ______________(7) List:

Deposits Pending (add to line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ + ______________(8) List:

Adjusted Bank Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ = _______________(9) This balance should agree with line 5.

We have examined the books of the treasurer of the __________________________________ PTA/PTSA in accordance with procedures outlined by Utah PTA and find them to be (choose one of the following):

Correct Incorrect :Incomplete for the following reasons

Date AFR Completed: ___________________________

Signature(s) of Auditor or auditing committee:

Signature of Audit Committee Member Printed Name



(Note: A computer-generated version of the audit report is acceptable but should provide the same information as outlined here.)

Please attach the AFR Procecdure Checklist to this form when submitting.

Annual Financial Reconciliation (AFR)Report for Fiscal Year: 20___ - 20___

Auditor Name

Address

Signature

Utah PTA - Treasurer - Annual Financial Reconciliation (AFR) : Report


State and National Dues

■ Membership dues should be paid by an ACH through MemberHub. A $1.00 ACH fee for each eCheck transaction will apply. For more information on submitting dues, see the Utah PTA website or support.MemberHub.com. No cash or personal checks.

■ Dues should be submitted by the 25th of each month.

Council Dues

■ The council dues are only applicable if you are in a region with councils. ■ The council dues amount is determined by the council bylaws. ■ Council dues are to be submitted along with the State and National dues through MemberHub by the

25th of each month.

Membership DuesInstructions for Submission


Keep these errors in mind as you read through the instructions for your PTA

Most Common Errors

■ Wrong Period Covered. Check to make sure that the appropriate time-period is selected. Also, do not include any items outside of the period to be covered. A form must be submitted for each 6 month period.

■ Omission of EIN and/or Date Bylaws Approved. (Date Bylaws Approved is NOT a Yes or No question.)

■ Incorrect EIN. (Sometimes the PTA Unit ID Number or the Utah PTA Tax Exempt Number is improperly used instead. (Example of PTA ID #: 12345678 ~ Example of EIN #: 87-12345678)

Unit Instructions

1. Unit requests for sales tax refunds can be submitted twice a year (in August for January 1 through June 30 and in February for July 1 through December 31). Alternately, requests for periods up to three (3) years back not previously requested, can be made at any time. No item outside the 6-month period covered should be included on each form.

2. Completely fill out the Unit Sales Tax Refund Request Form. A computer-generated report of the required data may be substituted for the second page..

3. To receive a refund from the State of Utah, a PTA making a refund request must be a PTA in good standing. This means that it must have an EIN, current bylaws, have submitted last year's Year End Statement and AFR, submitted this year's budget, and remitted all membership dues. Check your Local bylaws to be sure that they are current and to find your PTA's EIN, if you do not know it. If additional sheets are needed for making your request, copy the back side only. Staple all sheets together.

4. There is no minimum amount for which a refund request may be made. Remember that $2.00 is subtracted from each refund for processing costs if the refund is over $20.00. Under $20.00, there is no fee.

5. After submitting the form through MemberHub, keep the original form for your records. Once the forms are submitted, it takes approximately three months for checks to be received back from the Utah Tax Commission via Utah PTA. Checks, less a $2.00 handling fee, will be mailed directly to your school. Please deposit refunds promptly.

6. Making a sales tax refund request should not be viewed as an optional activity. These funds can and should be requested according to the established procedure so that they can be used to further the work of PTA!

Sales Tax Refund Request FormsInstructions for Submitting


Council Instructions

1. Any Council refund requests are made on the same Unit request form as the Local PTA and upload to MemberHub.

2. Verify that each Local PTA has completely filled out a Local PTA Unit request form and submitted it through MemberHub. Verify that all information is correct. Verify that the numbers have been added correctly.

3. Completely fill out the Sales Tax Refund Compilation Form. On the second page of the form, list all Local PTAs (whether making a request or not) in alphabetical order.

4. Submit the compilation form through MemberHub.

Region Instructions

1. Any Region refund requests are made on the same Unit request form as the Local PTA.2. Verify that all Unit and Council forms have been filled out completely and accurately.3. On the Region Sales Tax Refund Compilation Form, compile all Council totals and list them in

alphabetical order. Reports should be received from all Councils. 4. Verify that all PTAs have been contacted and have made any refund requests. 5. Submit the Region compilation form through MemberHub.

Unit Sales Tax Refund Request(For Local, Council, and Region Use)

Region / Council _______________________________________________________________________

PTA Unit Name ________________________________________________________________________

President's Name _______________________________________________________________________

Email & Phone _________________________________________________________________________

Treasurer's Name _______________________________________________________________________

Email & Phone _________________________________________________________________________

Units can submit refunds for periods up to 3 years back

¨ Taxes Paid January 1–June 30, 20___ ¨ Taxes Paid July 1–December 31, 20___Due 30 days after period ends

Total Sales Tax $ ________________ (From page 2)

Office Use:

Check #__________

Date:_____________

EIN #: __________________________

Date Bylaws Expire ______________________

Have Membership Dues Been Paid? YES / NO

Utah PTA Tax Exempt #12510060-002-STC

Utah PTA State Office will deduct a $2.00 handling fee. If refund is under $20.00, handling fee is waived.

Please list data about tax paid on page 2, or attach a computer-generated report of that information.

I certify that the information on this form is accurate.

_______________________________ _____________________________ Signature Position

(Please refer to Instructions for Submitting Sales Tax Refund Request forms.)

Utah PTA - Treasurer - Sales Tax Refund Request - Unit - Page 1

(Transfer Total to front page)

Date Sales TaxFor What PurposeTo Whom Was Check WrittenCheck #

Total: $


Sales Tax Refund Request forms are in Appendix 1 of this handbook . They can also be found at www .UtahPTA .org/Treasurer

Trea

sure

r Specific Issues


Exempt-Organization Issues501(c)(3) Group Exemption

Utah PTA has secured a 501(c)(3) exemption ruling from the Internal Revenue Service (IRS), recognizing it as a public charity under section 509(a)(2). Each PTA unit in Utah that is in good standing is covered under Utah PTA’s group exemption. (Utah PTA’s group exemption number is 7212.) The IRS requires Utah PTA, as a central organization, to submit annually a list of its subordinate units (local, council, and region PTAs) in good standing. If a unit chooses to no longer be affiliated with Utah PTA, it no longer has the benefits of tax-exempt status under Utah PTA.

Sales Tax Exemption

■ Utah lawrequireseveryPTAtopaysales taxonpurchasesunder$1,000. That sales tax is refunded upon request.

■ Forpurchasesover$1000,thetaxexemptnumber12510060-002-STC should be used.

■ A vendor may request an Exemption Certificate from a PTA toverify the tax exempt number. This certificate can be obtained from the Utah PTA office.

■ UtahPTAhasestablished,withintheguidelinesoftheStateofUtah,a procedure whereby PTA units may request a refund of the sales tax paid.

■ AllPTAsalestaxrefundrequestsmustbemadethroughtheUtahPTA.

Fundraising and Sales Tax

Local and council PTAs are not required to collect or pay sales tax on fundraising events where the items sold are not available to the general public. We must now collect sales tax on books sold at book fairs, since we are selling a third party's product for them. When a PTA does a fundraising event, if the money is collected by the vendor and not by the PTA, sales tax must be collected by the vendor.


Employer Identification Number (EIN)

Every PTA unit must have its own EIN from the IRS. This number is required for the PTA’s bank account(s) and is also used in conducting business with the IRS. Neither the school’s EIN nor an individual’s social security number should ever be used for PTA business. The PTA must also never “loan” its EIN to another group or organization.

If a PTA unit needs an EIN, it should contact the Region Director or the Utah PTA office. To obtain an EIN, an IRS Form SS-4 must be completed. When the form is completed and signed, it must be returned to the Utah PTA Treasurer for processing. The IRS will assign an EIN to the PTA, and a letter will be sent to Utah PTA informing them of the assignment. Utah PTA will forward this letter to the unit, and this letter must be filed with the PTA’s permanent records.

Determination Letter

The IRS issues a “determination letter” to organizations that have qualified for tax-exempt status. Because Utah PTA, as a central organization, determines which units are included as subordinates under its group exemption ruling, anyone seeking to verify that a PTA in Utah is tax-exempt can contact the Utah PTA office. Utah PTA can provide a letter about the group ruling and a copy of its determination letter from the IRS for potential donors, sponsors, or grantors. According to IRS Publication 4573, “donors may rely upon central organization verification with respect to deductibility of contributions to subordinates covered in a section 501(c)(3) group exemption ruling.” Email [email protected] with your school name and we will send you a letter. Since these expire as of June 30 each year, you will have to request a letter yearly.

Benefits of Tax-Exempt Status

As 501(c)(3) public charities, PTAs in Utah enjoy two substantial benefits:

■ Contributions may be treated by donors as charitable contributions for income-tax purposes. Such contributions include programs like grocery store card programs and corporate sponsorships, as well as donations from individuals. PTA members who receive little or no reimbursement for their PTA-related expenses may also be allowed to deduct their out-of-pocket expenses as charitable contributions; current IRS rulings should be consulted for allowable deductions.

■ Most income of the organization—income from activities that are substantially related to the exempt purpose—is exempt from federal income tax. As PTA fundraising efforts are often substantial, this exemption from paying income tax is very valuable.


Protecting Exempt Status

A section 501(c)(3) organization will jeopardize its exemption if it ceases to be operated exclusively for exempt purposes. An organization operates exclusively for exempt purposes only if it engages primarily in activities that accomplish the exempt purposes specified in section 501(c)(3). A 501(c)(3) organization:

■ Must absolutely refrain from participating in the political campaigns of candidates for local, state, or federal office

■ Must restrict its lobbying activities to an insubstantial part of its total activities,

■ Must ensure that its earnings do not inure to the benefit of any private shareholder or individual,

■ Must not operate for the benefit of private interests such as those of its founder, the founder’s family, its shareholders or persons controlled by such interests,

■ Must not operate for the primary purpose of conducting a trade or business that is not related to its exempt purpose, such as a school’s operation of a factory,

■ May not provide commercial-type insurance as a substantial part of its activities, and

■ May not have purposes or activities that are illegal or violate fundamental public policy.

Responsibilities of Tax-Exempt Status

While conferring benefits on 501(c)(3) organizations, federal tax law also imposes responsibilities on organizations receiving that status. PTAs in Utah are required to do the following:

■ Keep books and records detailing all activities, both financial and non-financial. This includes detailed information on sources of income and expenditures of funds, as well as minutes of the meetings where decisions are made about the activities of the PTA and such things as newsletters.

■ File an annual information return with the IRS either Form 990EZ, if required, or Form 990N. ■ Meet requirements for substantiation and disclosure for charitable contributions. ■ File Form 990T if there is $1000 or more of gross receipts from an unrelated trade or business.

Important Note: It is the outgoing Treasurer’s responsibility to make sure that the applicable annual information return is filed with the IRS.

The IRS suggests that organizations, like PTAs, that have frequent officer changes develop an information packet that contains the filing requirements, instructions for completing the applicable forms and for filing an extension, and any other pertinent information. The packet should be passed on to each new officer to ensure accurate and timely filing of returns and avoid penalty assessments.


2019-20 $

2018-19 $

2017-18 $

Total: $

Average: $

Gross Receipts Test

Divide Total Amout by 3

Is the Average greater than $50,000?Then file Form 990EZ

Otherwise file Form 990N e-Postcard

Gross Receipts Test

As each local, council and region PTA are subordinate units of Utah PTA, we are required to have a file copy of each 990 filing for fiscal year 2017-2018 and beyond. If a PTA has gross receipts during the year normally more than $50,000, it is required to file Form 990EZ, Short Form—Return of Organization Exempt from Income Tax, and the related schedules with the IRS.

The PTA’s gross receipts amount is calculated by totaling all income received during the fiscal year before any costs or expenses are deducted. Carryover amounts such as savings accounts and any other funds on hand at the beginning of the fiscal year are not included. The Utah PTA and National PTA portions of membership dues should also be excluded, as these amounts do not belong to the local PTA.

The IRS’s definition of “normally” is based on a three-year average, calculated by the “Gross Receipts Test.” An example of this calculation for the 2019-2020 fiscal year is shown below:

Completed 990EZ forms should be mailed to the Utah PTA office by September 1. (In order to receive an extension of time to file, Form 8868 must be filed by the deadline.)

Forms and instructions are available on the IRS website (www.irs.gov). The applicable schedules might include not only Schedule A and B (as in the past) but also Schedule C, G, and others.

National PTA’s PTA Finance Quick-Reference Guide is a useful resource, and some “Tips” can be found on the Treasurer page of Utah PTA’s website.


Form 990N (e-Postcard)

All PTA units in Utah (local, council, and region) that are not required to file IRS Form 990EZ are required to file an annual electronic notice, Form 990N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required To File Form 990 or 990EZ. This requirement came from the Pension Protection Act of 2006, with the purpose of improving transparency within the non-profit sector.

Form 990N should be filed by August 1st, following the close of the fiscal year. Form 990N must be filed electronically at https://sa.www4.irs.gov/epostcard. Only basic information is required on the form. A copy of the confirmation showing Accepted status should be submitted through MemberHub after the IRS has indicated that the filing was accepted.

■ To access the e-Postcard filing site at https://sa.www4.irs.gov/epostcard use the login ID and password that were created in the prior year, if available. The email address and other information can be updated, and the password can be changed, from the Manage Users page of the site. If you don't have last years login, it is easy to create a new one.

■ A current, valid email address is required, as the IRS will correspond with the PTA that way.

■ The Organization EIN can be found in the PTA’s bylaws. Each PTA in Utah has its own EIN, assigned by the IRS.

■ The system will show PTA Utah Congress as the organization’s legal name. This is because Utah PTA (identified by the IRS as PTA Utah Congress) is the parent organization for all PTAs in Utah and has a group tax exemption. Each PTA should enter its own name in the “Doing Business As” (DBA) name field.

■ The Tax Year Period for all PTAs in Utah is July 1 to June 30.

■ The Mailing Address for all PTAs in Utah is: 5192 S . Greenpine Drive, Salt Lake City, UT 84123 .

■ No other address, including a school or home address, should be entered as the PTA’s mailing address.

■ In the Principal Officer section, the name is the person filling out the form and the address entered can be either a school or home address.

■ When the 990N is first submitted, the status is "Pending". You MUST log back in approximately ten (10) minutes later before printing the confirmation. Make sure the status says "Accepted" before printing the confirmation to submit on MemberHub.

Additional instructions on filing the e-Postcard are available on the Treasurer page of the Utah PTA website.

Substantiation and Disclosure Requirements

IRS Publication 1771, Charitable Contributions – Substantiation and Disclosure Requirements, explains the federal tax law for charities (like PTAs) that receive tax-deductible contributions. Some of that information is summarized here; the publication in its entirety can be downloaded from the IRS website (www.irs.gov).


There are two general rules to meet the substantiation and disclosure requirements:

1. A donor must obtain a written acknowledgment for any single contribution of $250 or more to claim it on his or her federal income tax return. Further, as of January 1, 2007, no charitable contribution can be claimed unless the donor has either a bank record (such as a canceled check) or a written communication from the charity (such as a receipt or a letter) to support the contribution.

2. A charitable organization must provide a written disclosure to a donor who makes a payment in excess of $75 partly as a contribution and partly for goods and services provided by the organization.

Rule 1Applies to any contribution received by the PTA. Although it is the donor’s responsibility to obtain a written acknowledgment, the PTA can assist a donor—and hopefully encourage continued donations—by providing a timely, written statement containing the following information:

■ Name of PTA

■ Amount of cash contribution, or description (but not the value) of non-cash contribution

■ Statement that no goods or services were provided in return for the contribution, or a description and good faith estimate of the value of good or services that were provided

While donors may not expect PTAs to provide a written acknowledgment for small, cash donations given for an event like a jog-a-thon, the PTA should be prepared to issue such a receipt if it is requested. Insubstantial goods or services provided in exchange for a contribution do not have to be described in the acknowledgment. Examples might include a school calendar magnet or student directory with the PTA’s logo. It is not necessary to include the donor’s social security number or tax identification number on the acknowledgment.

Examples of wording for written acknowledgments is as follows:

“Thank you for your cash contribution of $300 to Exemplary PTA, received by us on December 12, 20__. No goods or services were provided in exchange for your contribution.”

“Thank you for your donation of twelve dozen muffins to Exemplary PTA for our Moms & Muffins literacy program on April 2, 20__. No goods or services were provided in exchange for your contribution.”

Rule 2 Applies to PTA activities like silent auctions. In such cases, a donor may only take a contribution deduction to the extent that the contribution exceeds the fair market value of the good or services the donor receives. The required written disclosure statement must do the following:

■ Inform the donor that the amount of contribution that is deductible for federal income tax purpose is limited to the excess of the contribution over the value of the goods or service provided

■ Provide the donor with a good faith estimate of the fair market value of the goods or services

The disclosure must be in writing, and a penalty is imposed on charities that do not meet the written disclosure requirement.


Unrelated Business Income

Unrelated Business Income (UBI) is income that is not related to the organization’s exempt purpose. If a PTA receives more than $1000 in UBI, it must file Form 990T.

Income is classified as UBI when three factors exist:

■ A trade or business (“active”)

■ Regularly carried on (in contrast to only “discontinuously or periodically”)

■ Unrelated to the organization’s tax-exempt purpose

The income from most PTA fundraising activities is exempt from federal income taxes because of the following exceptions to the general rules:

■ Volunteer activities (Volunteers must do “substantially all” of the work—at least 85 percent.)

■ Low-cost merchandise (Items are given in conjunction with solicitation of charitable contributions.)

■ Donated merchandise (“Substantially all” of the items sold must be donated.)

Form 1099-MISC

PTAs may be required to file Form 1099-MISC with the IRS if they pay $600 or more during the calendar year to any unincorporated business or person for services (including parts and materials), or for prizes or awards. Possible situations where this rule applies include an artist-in-residence or a performing group. The form and instructions can be obtained from the IRS website (www.irs.gov).


For More Information

National PTA’s Finance Guide, which is available at www.ptakit.org, contains more information about many tax-exempt organization issues. A pamphlet on tax issues written by National PTA’s attorney may be available for purchase at the Utah PTA office.

Additionally, the Internal Revenue Service (IRS) has a Web-based version of its Exempt Organizations Workshop. The free virtual workshop, Maintaining 501(c)(3) Tax Exempt Status, covers tax compliance issues confronted by small and mid-sized tax-exempt organizations. It consists of five interactive modules on tax compliance topics for exempt organizations:

■ Tax-Exempt Status. How can you keep your 501(c)(3) exempt?

■ Unrelated Business Income. Does your organization generate taxable income?

■ Employment Issues. How should you treat your workers for tax purposes?

■ Form 990. Would you like to file an error-free return?

■ Required Disclosures. To whom do you have to show your records?

Users can access this training program at www.stayexempt.irs.org. The modules can be completed in any order and repeated any number of times. Also web-based courses that delve into a variety of topics of interest to exempt organizations.


FundraisingThe primary emphasis in PTA should be the promotion of the PTA Mission and Purposes of the PTA. The real working capital of a PTA lies in its members, not in its treasury.

PTAs do not exist to raise money, but raise money to exist . Fundraising is NOT a primary function of PTA .

When PTAs invest their human resources in programs that improve homes, schools, and communities, they earn benefits for children and youth with very small outlays of money. PTA-sponsored programs can provide enrichment activities for families. PTAs can work with other community organizations on community-wide issues that correlate with PTA priorities.

Planning for PTA fundraising activities should occur after the planning of the programs and projects for the school year. PTA does not exist to raise large amounts of money or supplement school finances. One well-planned fundraising event will usually raise the funds needed to fulfill the goals and objectives of the PTA for the year. Any funds generated by a PTA, including the local portion of dues, should be used for definite budgeted purposes that advance the PTA Purposes, such as projects and programs, that benefit children and families, promote parent-teacher cooperation, and enhance the school environment and curriculum. In addition, PTAs can work with community organizations to promote community-wide development projects. Leadership development through PTA conventions and conferences is also an appropriate and important use of PTA funds. Please use the PTA Event Checklist found in Appendix 2 to make sure all financial procedures are followed for PTA events.

Standards for PTA Fundraising

PTAs are often asked to finance programs and purchase needed equipment that tight school budgets cannot provide, and each PTA must decide what it will do. Before approving proposals for material aid to the school or community, a PTA should consider whether or not the proposed equipment or service is a public responsibility. Is it something that taxes are to be used for? For example, tax revenue is already being collected to fund textbooks, salaries, computers, playground equipment, classroom materials, and so forth. PTA’s role is to advocate for adequate and equitable funding for all public schools. In emergencies, PTAs may provide for the pressing needs of children and youth while they work to alert the public to its obligations.

A PTA renders a greater service by working to secure adequate funding for programs that have an enduring benefit than by purchasing equipment for schools. PTAs should not contribute to the problem of inequities within a school district by excessive funding.

The framework for how a PTA should conduct its fundraising is determined by the policies of the National PTA organization and the government regulations for 501(c)(3) tax-exempt organizations. PTA fundraising should be carried out within the framework of PTA’s noncommercial policy. This policy requires that the PTA not endorse any commercial entity nor engage in business activities unrelated to the Purposes of PTA. A general fundraising guideline is the 3-to-1 rule: for every fundraising activity, there should be at least three non-fundraising programs or projects aimed at helping parents or children. PTA fundraising activities must also comply with school district policies.


Policies and Regulations Affecting Fundraising

All PTA bylaws—national, state, council, and local—include the requirement to be noncommercial. PTA’s noncommercial policy prohibits the PTA from endorsing a commercial entity and from engaging in activities unrelated to the promotion of the Purposes of PTA. It also means that the name “PTA,” which is a registered service mark, cannot be used in advertising or promoting of the goods and services of a commercial entity. The noncommercial policy does not preclude corporate sponsorship; see page 61 for further information.

PTA policy is also very clear that children should never be exploited or used as fundraisers. Competitive, high-pressure selling of a product is not considered an appropriate activity for a child to be engaged in on behalf of PTA. Assemblies where children or youth are “hyped up” to go out and sell items so they can “earn” prizes are discouraged. Children are never to go door-to-door selling items for PTA.

As 501(c)(3) organizations, PTAs are prohibited under federal law from engaging in substantial business activities that are unrelated to their tax-exempt purposes, which are legally defined as educational and charitable. A PTA’s tax-exempt status is one of its most important assets. If that status is revoked, charges of negligence or mismanagement may be brought against the officers and directors. When considering any fundraising activity, therefore, the PTA should ask, “Will this activity adversely affect our tax-exempt status?” Further, the revenue from some fundraising activities, if not structured appropriately, may be considered to be “unrelated business income” by the Internal Revenue Service (IRS). “Unrelated business income” is taxable. (See page 58 for more information.)

School districts may have established policies and procedures for organizations to follow when doing fundraising on school property and/or using staff and students, including limits on the amount of fundraising allowed and required approval processes. PTAs should be familiar with district policy and work cooperatively with school personnel. Your Region Director is the best resource for knowing the school district’s fundraising policies.

Selection of an Appropriate Fundraiser

If the fundraising event is to reflect the high principals of the association, it will have educational, social, or recreational value in itself. One well-planned fundraising event will usually raise the funds needed to fulfill the goals and objectives of the PTA for the year. The following questions should be considered in selecting and planning a fundraiser that will be both successful and worthy of the PTA:

■ Does it adhere to the PTA Mission and the Purposes of PTA?

■ Does it conform to the noncommercial, nonsectarian, and nonpartisan policies set forth in the PTA bylaws?

■ Does it preclude the exploitation of children?

■ Will it create goodwill for the PTA?

■ Is it a type of activity that can serve as a positive example for children and youth?

■ Will it provide the revenue needed to meet the PTA’s goals?


■ Has a budget of required expenditures (e.g., cost of materials and publicity for the event) been provided?

■ Are special permits, such as food handling permits, required?

■ Are the PTA and its members protected through sufficient insurance coverage or otherwise?

■ Are contracts required? If so, has the President signed contracts with vendors and/or manufacturers? (The President is the only person who can sign a contract binding the PTA, although the principal may make recommendations to the executive committee regarding contracts and their appropriateness with regard to school system regulations.) Do contracts for products include responsibility for spoiled, damaged, or unclaimed goods?

■ Have procedures been established to safeguard the handling of products and money?

■ What requirements, if any, are involved in using a facility?

■ Are there applicable local, state, or federal laws, and if so, is care taken to see that no law is violated?

Contracts with Commercial Vendors

Commercial vendors involved in PTA fundraising activities that involve the selling of a product or service may require the PTA to sign a written contract. Contract guidelines are as follows:

■ All contracts must be in writing.

■ The length of the contract must be limited to the term of the participating officers. Like any legal document, fundraising contracts are binding on the PTA and result in legal liability if they are not fulfilled.

■ All terms of the contract should be carefully read and understood. If there are any questions, consult an attorney for clarification. Do not rely on the advice of the vendor.

■ The terms of the contract must be approved by the board before the contract is signed.

■ The President should clearly indicate that he or she is signing for the organization, not as an individual:

__________________________ by ______________________________

Donation Fundraisers

Some PTAs have had good success with donation-type fundraising efforts, either as a “no fundraiser” direct solicitation for tax-deductible donations or in conjunction with a student jog-a-thon, read-a-thon, or similar activity. Others have run profitable auctions of donated merchandise, which may or may not result in the collection of donations.

Putting 100 percent of the funds collected into PTA programs is the primary advantage of these types of fundraisers. Psychologically, that can be a big selling point for parents. On the other hand, some PTAs end

(Name of PTA/PTSA) (Signature of PTA President)


up making less money than they would if they had worked in conjunction with a commercial vendor to sell a product or service. The amount of time and energy required of PTA volunteers might be the same as or even more than (particularly in the case of auctions) it is for sales-type events.

If a PTA decides to conduct a donation fundraiser, the Treasurer and event chair must be familiar with the IRS rules regarding substantiation and disclosure summarized in the Exempt-Organization Issues section of this handbook. When there are no goods or services provided to donors and individual donations are less than $250, such as in a jog-a-thon event, the PTA may want to provide notification to potential donors that receipts will be provided only upon request or that the donor’s canceled check will serve as his or her receipt. For an auction event, advance preparation of receipts that include the value of the goods or services to be auctioned will help facilitate compliance with the disclosure requirements.

Corporate Sponsorship

Corporate sponsorship is a funding mechanism in which a commercial entity supports a charitable or educational organization (such as a PTA) with cash, products, or services in exchange for acknowledgment or recognition of the sponsor’s support. Sponsorships can relate to a specific event or to the PTA as a whole.

Corporate sponsorship is an appropriate means of funding projects and programs that promote the objectives of the PTA. Corporate sponsorship stands in contrast to endorsement, in which the PTA extols the virtues of a company’s products or services. Endorsement activities are not appropriate for PTAs based on PTA’s noncommercial policy.

A special provision in the Internal Revenue Code provides that 501(c)(3) organizations are exempt from paying federal income taxes on income from corporate sponsorships as long as IRS guidelines are followed. According to IRS Publication 598, qualified sponsorship payments are payments “made by a person engaged in a trade or business for which the person will receive no substantial return benefit other than the use or acknowledgment of the name, logo, or product lines in connection with the organization’s activities.”

As a general rule, the PTA may thank the sponsor for its support. The thank-you may be in writing or on posters, banners, or other appropriate media. It must be limited to an expression of thanks and can list identifying information of the sponsor, including name, address, phone number, website address, and logo. The sponsor’s product(s) can also be distributed as part of the acknowledgment.

“Use or acknowledgment” does not include advertising, which includes the following:

■ Qualitative or comparative language (such as “this is the best”)

■ Price information or other indications of savings or value

■ Endorsement

■ Other inducement to purchase, sell, or use a sponsor’s products or services

Sponsorship payments that constitute advertising will be subject to federal income tax. On the other hand, qualified sponsorship payments are considered to be charitable donations, and there is no limit to the amount that can be received by the PTA.


Charitable Solicitations Act

In Utah, under the Charitable Solicitations Act, charitable organizations are required to be registered with the Utah Division of Consumer Protection before soliciting charitable donations. “Charitable solicitation” means any request, direct or indirect, for money on the representation that it will be used for a charitable purpose. (Additional information about the Charitable Solicitations Act can be found at consumerprotection.utah.gov/registrations/charities.html.)

The law provides an exemption from the registration requirement for a PTA organized within and authorized by a school in support of the operations or extracurricular activities of the school. A one-time, no-fee notice of claim of exemption must be filed with the Utah Division of Consumer Protection. A list of organizations that have filed such a notice can be found on the Division’s website at www.consumerprotection.utah.gov.

A PTA that has not already filed a notice of claim of exemption should do so immediately; penalties could be assessed on a PTA that is not in compliance with the law. Utah PTA office staff can assist a PTA in completing a notice of claim of exemption. They can be contacted at 801-261-3100 or [email protected].

Commercial Co-Venturing

Commercial co-venturing is a form of fundraising in which money is paid to a business for a product or service and a portion of that money is forwarded, as a gift, to the PTA. Given PTA’s noncommercial policy, the only appropriate role in any such venture is a passive one. Active promotion of the business’ products or services by the PTA and its members would violate this policy. Additionally, such fundraising activities should be structured to protect PTA’s tax-exempt status and avoid unrelated business income. The funds received by PTAs from such agreements should be accounted for as contributions on their financial records.

Games of Chance

Under Utah law, it is illegal to operate a scheme under which a person gives something of value in order to obtain a chance to get something of value. A raffle which requires purchase of a ticket is, therefore, illegal. A prize drawing may be conducted, however, if one of the following conditions is met:

■ Payments are considered to be donations, and anyone can have a ticket whether a donation is made or not; or

■ The payment is for an article with a value reasonably related to the amount of the required payment, and the ticket is given to the purchaser without additional charge.


Accounting for Funds

Because the Treasurer’s duties are time-consuming and require attention to detail, he or she will likely not have a great deal of time to actively participate in the mechanics of PTA fundraisers. The involvement of the Treasurer in fundraising activities should focus on ensuring compliance with IRS regulations and PTA and district policies and on maintaining copies of contracts and other documentation. Additionally, as with other financial transactions of the PTA, the Treasurer is required to keep complete financial records of income and expenditures associated with the fundraiser:

■ At the fundraising event or when the funds are received, the Treasurer, the chair of the event, and a third person should count the monies received. All three should sign a money counting sheet (see sample in Appendix 2) verifying the amount; this form should be attached to a funds received form (see sample in Appendix 2).

■ All monies received should be deposited the same day. Arrangements should be made for the bank’s night depository if the deposit must be made after banking hours. Funds should never be deposited in a personal bank account or in the account of another organization (e.g., the school). Funds must never be taken home or left at the school overnight. Preparing deposits periodically throughout a lengthy event, such as a book fair, will minimize the time required at the conclusion of the event.

■ When change is needed for a cash box, a check request form (see sample in Appendix 2) should be submitted by the event chair. The Treasurer issues a check to the individual for the amount requested. The check should not be made payable to cash. The amount of the money in the cash box should be recorded on a signed Beginning Cash Box Balance form (see sample in Appendix 2), which should be kept in the cash box until the fundraising event is completed. The beginning cash balance is included in the final counting of the money from the event and deposited back into the PTA checking account. The beginning cash balance should not be included in the computation of profits from the event.

■ Itemized invoices, sales receipts, etc. for expenses related to the fundraising event are given to the Treasurer for payment by check. No disbursements should be made from cash collected at the event.

■ Following the fundraising event, the Treasurer, in conjunction with the chair, should prepare a written financial report of income and expenses associated with the event and present it to the board.

More information about receipt and disbursement of funds in the Receiving and Disbursing Funds section of this handbook.


Required Coverage for PTAs .

On April 30, 2014, the Utah Risk Manager of Administrative Services, modified Rule R37.4 of the Utah Administrative Code adjusting the Utah Governmental Immunity Act Limitations (Tort Limits).

This adjustment REQUIRES ALL PTA groups to have and maintain General Liability coverage with limits up to the governmental entity tort limits (i.e. - same coverage as for School Districts). PTAs are NOT covered by their district or school insurance, they MUST obtain and maintain their own policy. This is a broader law for anyone who uses a school/civic center facility to purchase liability insurance for events that are outside of school responsibilities. The law is designed to be adjusted each year and therefore the limits may change each year.

As of January 18, 2019, the law stipulates a liability limit of $2,552,000 .

While we cannot mandate that you purchase your coverage through AIM Insurance, we can advise you that we have secured, through a partnership between Utah PTA and AIM Insurance, a discounted yearly rate. If you already have coverage in place with another carrier, we suggest you review the coverage to see if it meets the required regulations and, if necessary, increase your limits or move your coverage to AIM Insurance.

Utah PTA has selected September 1 of each year as the date of compliance for having proof of insurance coverage renewed. This date was chosen to correspond with the beginning of the traditional school year, so any unit that signs up for coverage, regardless of the date you sign up, will automatically have an expiration date of September 1. Confirmation is to be submitted through MemberHub by September 15 of each year.

Insurance


Different types of policies:

■ General Liability. This insurance provides coverage for a PTA’s legal liability arising from injury or property damage resulting from the PTA’s activities and operations. Such coverage may be purchased either on a continuous, year-round, comprehensive coverage basis, or on a one-time basis for special events (such as carnivals). PTA events are not covered by the school district’s general liability policy. Consult with your insurance agent to decide which works best for your PTA.

■ Fidelity Bonding. This type of policy covers losses through fraudulent or dishonest acts committed by officers or volunteers. If someone entrusted with the PTA’s money embezzles that money, this policy will replace those missing funds.

■ Directors and Officers (D&O) Liability. This insurance provides protection against claims arising out of the wrongful acts of directors and officers, such as discrimination and breach of contract. The Volunteer Protection Act of 1997 provides some reduction of risk to nonprofit organizations, including PTAs, but the laws have significant limitations. (For more information on the Volunteer Protection Act, see www.eriskcenter.org.)

■ Property. This type of policy will replace PTA property damaged or lost due to theft or natural hazard. Most local PTAs do not own personal property, but those that do should consider this coverage. This type of policy would also protect fundraising merchandise while it is in your possession.

In making decisions about risk management, two variables should be considered: the frequency at which a loss can be expected to occur, and the severity of the loss that can be expected when one does occur. When the risk has a high frequency of occurrence, steps should be taken to reduce the risk. This risk reduction might take the form of cash counting policies that would prevent one person from having sole access to fundraising money. But when the risk has a low frequency of occurrence but a high severity of loss, such as the death of child on a carnival ride, transfer of the risk is likely the best approach. In other words, this is the type of situation in which the PTA might consider covering the risk through the purchase of an insurance policy.


Mismanagement of FundsIf proper fiscal management procedures are consistently followed in an accounting system with adequate internal controls, a PTA should not have problems with embezzlement or mismanagement of funds. A summary of “Basic Fiscal Management Procedures” is located in the Utah PTA Presidents Handbook and this handbook. This summary should be reviewed by the elected officers and other PTA members who will be handling PTA funds during the year (e.g., fundraising chair and membership chair). Each of these officers and members should sign the form indicating that he or she understands the procedures. The signed form is to be submitted through MemberHub by September 15th.

Guidelines to Follow When Money Has Been Mismanaged or Embezzled:

1. When mismanagement or embezzlement of funds is suspected, the PTA line of communication should be followed in informing and receiving direction and assistance. The local PTA should contact the council. The council in turn will contact the region, and the region will make contact with the Utah PTA Treasurer. If for some reason assistance cannot be obtained through the line of communication, contact the Utah PTA Treasurer directly.

2. When any wrongdoing is suspected, the person involved should have a hearing with the local executive committee and make an explanation of what has happened. If the hearing is unsatisfactory for either party, the decision may be appealed up the line of communication. Once wrongdoing is suspected, hearings should take place in a timely manner.

3. The PTA officers have a responsibility to the membership for all PTA monies. The PTA also has the responsibility to be a professional organization. The PTA officers are highly encouraged to try to protect the person’s reputation by using discretion in what is said and done, especially in the preliminary stages of an investigation. It is not responsible, however, to disregard the incident.

4. If the results of the hearing warrant further action, the executive committee should request that an audit be done, if appropriate, and documentation gathered. They should also carefully consider whether it might be appropriate to file a police report and/or to close the bank account. If an outside investigation is warranted, the police will become involved.

5. Theft of money is breaking the law and should be handled as a serious offense. Embezzlement is the same as ordinary theft. The charges are criminal and, if deemed appropriate, are filed at the police department. The charges can range from misdemeanors to felonies, depending on the amount.

6. According to the local PTA bylaws (Article VI, Section 7b), a person who fails to perform the duties of his office should be removed from office. It is the responsibility of the local executive committee to meet and declare the office or position vacant. All resignations must be made in writing to the President. The local executive committee is to elect a replacement to fill any vacancy.

7. PTA officers should not make any public or private statements about the situation, take any action without having the approval of the board of directors, or say anything to anyone which could be taken as a defamation of character, slander, or other statement of guilt about someone suspected of embezzling funds.


Utah PTA Food Stamps Policy Approved November 2016

PTAs cannot reimburse anyone who has purchased PTA supplies with government-issued or non-personal funds like food stamps or SNAP funds. It is against the law.

DWS Financial/Food Stamp Rule 825-3: Food Stamp Trafficing Policy, effective March 1, 2016. Food Stamp Trafficing is defined as: ... #5. Intentionally purchasing products originally purchased with Food Stamps in exchange for cash or consideration other than eligible food.

How to identify receipts that are not eligible for reimbursements.

1. It will say “EBT-FS”, “Food Stamps” or “EBT SNAP”.2. The receipt will often show a Beginning and Ending Balance (Beg Bal & End Bal)3. These receipts will most often show no sales tax.

● If a person attempts to turn in these types of receipts, remind them that PTA is unable to reimburse thembecause doing so, would be committing food stamp fraud.

● All Presidents and Treasurers look carefully at every receipt turned in to see if the purchases were paid for withFood Stamp (SNAP) funds. Remember both the President and Treasurer must review receipts and sign theCheck Request Form before a reimbursement check is written.

Utah PTA Food Stamps Policy


The Use of Gift CardsThe gift card industry is a growing one, with nearly $100 billion dollars in annual sales. Many PTAs in Utah have recognized the benefits that gift cards offer and are purchasing them for use in their programs. Inherent with the use of gift cards, however, is the potential for misuse, and occurrences of such problems are increasing around the state. This white paper will review some of the problems that can occur with the use of gift cards and outline recommended policies and procedures for their use. For the purposes of this paper, the term “gift cards” includes gift certificates.

What Are Some of the Ways That PTAs Are Currently Using Gift Cards?

■ As prizes or incentives for students in Reflections, Battle of the Bands, and other programs ■ As membership incentives. As “stipends” for teachers ■ For the purchase of classroom supplies ■ In conjunction with teacher appreciation activities ■ As donated merchandise for “silent auction” fundraising events ■ As thank you gifts for volunteers

What Are the Potential Problems with Using Gift Cards in These Ways?

■ Loss of accountability. Gift cards, like cash, can be used by anyone. Without adequate documentation of the purchase and distribution of gift cards, no one is accountable for those items and there is no “audit trail.” For example, students who do not attend their Reflections award night might never receive the gift cards purchased as prizes because they can readily be slipped into a purse and forgotten. Similarly, a PTA officer who accepted a donated gift card from a local business might use it for a purpose other than that approved by the board or even for a personal purchase. Unfortunately, PTAs, like all non-profit organizations, are susceptible to fraud. The policies and procedures in place for control of cash transactions – such as two signatures on checks, prompt reconciliation of bank accounts, and detailed documentation – are sometimes nonexistent or easily circumvented with gift cards, resulting in an even greater possibility for the perpetuation of fraud.

■ Turning volunteers into employees. When cash, gift cards, or gift items of more than nominal value are given to PTA volunteers, the PTA runs the risk of turning the volunteer into an employee in the eyes of the IRS. While the work of PTA volunteers is invaluable, if a PTA attempts to “compensate” a volunteer for his/her services, then he/she is no longer a volunteer. As an employee, he/she becomes liable for paying taxes on her income, and the PTA, as an employer, becomes subject to payroll filings and taxes.


How Can These Problems Be Avoided?

■ Treat gift cards as cash.

■ Institute the use of a log for disbursement of gift cards (or cash) used for prizes or incentives for students so that there is documentation of who received each award. (That log, signed by each prize recipient, would be attached to the check request form used for the purchase of the gift cards.)

■ Limit use of gift cards for PTA purchases to items in the approved budget, and maintain, to the extent possible, the same controls that should be in place for cash purchases (including having two people coordinate gift card use and retaining receipts for purchases made). (See Appendix 2 for sample.)

■ Require submission of receipts for purchases made on gift cards used by teachers for classroom supplies.

■ Eliminate use of gift cards (or cash) for teacher “stipends,” as this creates an employer-employee relationship.

■ Maintain an “accountable plan” for reimbursement of legitimate PTA expenses. (Such a plan – which isaccomplishedbyfollowingPTA’srecommendedbasicfiscalmanagementprocedures�includesthe timely submission of documentation of the expenses incurred through invoices, receipts, etc.)

■ Eliminate use of gift cards (or cash) as “thank you” gifts for volunteers, as this creates an employer-employee relationship.

References

“Stay Exempt: Tax Basics for Exempt Organizations. Course 3: Employment Issues.” Internal Revenue Service. www.stayexempt.org

“Exempt Organizations: Compensation of Officers.” Internal Revenue Service. www.irs.gov/Charities-&-Non-Profits

Disclaimer

The information, suggestions, and recommendations in this document are provided for educational and informational purposes only. They are not intended to, and do not constitute, legal or tax advice. PTAs and their members should consult their own attorneys or accounting professionals for relevant laws and regulations.

A Prizes / Gift Card Sign-out Sheet can be found in Appendix 2 of this handbook . It can also be found at www .UtahPTA .org/Treasurer


Where can I find a list of what our PTA can or cannot spend money on?

There is no published list from either National PTA or the IRS of acceptable expenditures. PTA’s Mission and tax-exempt status should guide your decisions. All expenditures in the PTA budget must support the Mission of PTA. If there is a questionable expenditure, a good rule of thumb is to authorize the expenditure only if you could defend the expense to the IRS in case of an audit.

Utah PTA takes no official position on the appropriateness of specific expenditures of its affiliated local PTAs, except as follows:

All activities should be in accordance with the Mission and Purposes of PTA, as outlined in the bylaws and as required by our status with the IRS as a 501(c)(3) public charity.A needs assessment should direct the work of the local PTA and its annual goals and objectives.All expenditures must be made within the budget categories and amounts approved by the general membership.Local PTAs should comply with the guidelines of the school district in which they operate.

When do we need to amend our budget?

Any substantial change to the budget must be approved by a two-thirds vote of a quorum of the membership (or a majority, if prior notice of the vote was given). The amendment must occur prior to any additional funds being disbursed. The vote may be taken at any regular general membership meeting or at a special meeting called for that purpose. The number of members required for a quorum is defined in the bylaws. Consider using a ten percent change as the definition of “substantial.”

How do we get a 501(c)(3) or determination letter to give to a potential donor?

Donors to your PTA may request a “determination letter” or 501(c)(3) letter as proof that their donation is tax-deductible. Corporate giving programs like Smith’s Community Rewards will generally require this documentation. It will probably also be required for any grant application your PTA may be completing. Contact the Utah PTA office at [email protected] to get a letter about Utah PTA’s group exemption ruling from the IRS for your potential donors, sponsors, or grantors.

What information should the Treasurer be reporting to the executive committee and the board?

The Treasurer should provide a written Treasurer’s report to the executive committee and board on a regular basis, preferably at each of the regular meetings. It is the responsibility of the entire executive committee to ensure that proper financial procedures are being followed. The specific format of the Treasurer’s report is less important than the fact that reports are made. (See Appendix 2.)

FAQ


Are local PTAs covered by insurance provided by Utah PTA?

Utah PTA does not provide insurance coverage for any local PTA. It is the responsibility of each PTA to determine their needs for insurance.

When would our PTA be required to issue a 1099-MISC?

PTAs are required to issue IRS Form 1099-MISC by January 31 to any unincorporated business or individual they paid $600 or more in the calendar year for services rendered or in payment for a prize or award. Form 1099-MISC is not required for payments to corporations.

What should our PTA do about an NSF (non-sufficient funds) check?

Contact, either by telephone or in writing, the maker of the check, and explain that the check was returned by the PTA’s bank. Ask the maker to replace the check immediately, preferably in cash, and also let him/her know about fees, if any, the bank has charged you for the transaction. Some units have had success with sending a letter signed by the school principal in addition to the PTA President or Treasurer.

At any PTA function where checks are accepted, it is advisable to post a notice clearly outlining your PTA’s policy regarding returned checks (e.g., $10 fee will be assessed on all returned checks). It is also acceptable to discreetly let those collecting payments at PTA events that checks will not be accepted from certain individuals.

I’ve heard that our PTA cannot carry over more than $2000 from one year to the next . Is that true?

Absolutely not! Good financial management would suggest that your unit maintain an emergency reserve to retain financial stability in the event of an unforeseen development, such as an economic downturn, unexpected expenses, or a fundraiser that is less successful than anticipated. No law or regulation dictates the amount of the carryover from year to year. Depending on the timing of your unit’s cash flow, a carryover of one-half to one full year’s expenses would not be unreasonable.

Can we donate PTA funds to help them?

The home of several of the students in our school was involved in a fire, or one of our students needs an organ transplant, or we’ve noticed that several students need winter coats. No matter how worthy the cause, IRS regulations prohibit PTAs from making distributions to private individuals or families. The PTA mission focuses on all children. (Of course, this does not preclude an individual from setting up a fund for such purposes, but the funds should never be run through the PTA account.)


Your PTA can include in its approved budget a donation to another nonprofit organization. The recipient must be a 501(c)(3) charity and must have a mission similar to PTA’s (school or child-related).

A new school is being built and some of our students will be attending the new school . How much of our funds do we have to give the new school’s PTA?

While not required, it is considered a beneficial act for the existing PTA membership to pass a motion giving the new PTA some start-up funds. One reasonable amount for that donation could be determined by prorating the expected year-end balance based on the number of students moving to the new school. In some areas, all PTA units in the council donate a set amount to the new PTA. Consult with your council and/or region leaders about what they recommend. Please remember that the new group must be a valid PTA affiliated with Utah PTA and National PTA before any funds may be given.

Our PTA is going to end the year with more money than we thought we would . How do we gift the excess money to the school?

Your PTA is not limited to a certain amount of money in its bank account from year-to-year, so it is perfectly acceptable to just carry this “excess” money forward to next year. But if the PTA wants to provide some funds to the school for a specific purpose, it must include this item in the approved budget (amending the budget, if necessary) and should distribute the money in the form of a grant (located in Appendix 2). A written grant agreement should include the specific purpose of the grant and require that the funds be used within a specified time period and that a written accounting be given to the PTA from the school.

What should happen if someone loses a receipt for reimbursement?

For audit purposes, you must have receipts showing that each check was written for a specific item(s) for a specific purpose. If a receipt is lost, the request for reimbursement should come to your PTA board and they can determine how to document an expense so that the person can be reimbursed.

Can we reimburse board members for mileage for attending Leadership Convention?

Travel is a legitimate PTA expense. The rate at which to reimburse mileage is something that should be set and voted upon by your local PTA board. The policy should be included in your “Standing Rules.” If you don’t currently have an established rate you can consider the IRS’s reimbursement for charitable miles driven is $.14. Utah PTA reimburses for mileage at a rate of $.35.

Trea

sure

r Appendix IReporting Forms

Procedure ChecklistAnnual Financial Reconciliation (AFR)Annual Financial Reconciliation (AFR)

Procedure Checklist

It is recommended that this checklist be filed with the audit report in the permanent file.

Agree beginning balance (July 1) to ending balance (June 30) on previous audit report and on June 30 bank reconciliation.

Checkyear-endfinancialstatementandmonthlytreasurer’sreportsforaccuracy. Reviewfinalbankreconciliation(preferablyJune30),notingdepositspendingandchecksoutstanding. Verifythatallincomeandexpenseslistedontheyear-endfinancialstatementwereincludedinthe

approved budget.

Perform a sample test of transactions:

Reviewmonthlybankreconciliations. Examinecancelledchecksfortwosignaturesand,ifpossible,appropriateendorsements. Trace deposits made to cash counting sheets and deposit slips. Trace checks paid to check request forms, noting appropriate authorizations and supporting

documentation.

Reconcile membership dues income to membership reports:

Reconcile number of members to amount recorded as income (# of members x local portion of membership dues amount).

Make certain that Utah PTA and National PTA portions of membership dues receipts (amounts not belonging to the unit) have been recorded separately from other receipts and remitted to Utah PTA in a timely manner.

If appropriate, make certain that council PTA membership dues have also been remitted to the council PTA in a timely manner.

Determine whether refunds have been requested through Utah PTA for all sales tax paid during the year.

NOTE: A copy of the AFR report must be submitted to through MemberHub no later than August 1. The AFRreportmustbeofficiallyadoptedbythePTA’smembershipatthefirstgeneralmeetingofthenewfiscalyearandfiledintheunit’spermanentfile.

Utah PTA - Treasurer - Annual Financial Reconciliation (AFR) : Procedure Checklist

Report Form

Name of PTA: _____________________________________________ Date: ____________________

Council: __________________________________________________ Region: __________________

Balance on Hand as of July 1 (should agree to prior year report) . . . . . . . . . . . . . . .$ ______________(1)

Receipts (total deposits from July 1 to June 30) . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ + ______________(2)

Total (add lines 1 and 2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ = ______________(3)

Disbursements (total checks written from July 1 to June 30) . . . . . . . . . . . . . . . . . .$ - ______________(4)

Balance on Hand as of June 30 (checkbook or ledger balance) . . . . . . . . . . . . . . . .$ = _______________(5) This balance should agree with line 9.

Bank Balance as of ______________ (date of most recent bank statement) . . . . . .$ ______________(6)

Checks Outstanding (subtract from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ - ______________(7) List:

Deposits Pending (add to line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ + ______________(8) List:

Adjusted Bank Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ = _______________(9) This balance should agree with line 5.

We have examined the books of the treasurer of the __________________________________ PTA/PTSA in accordancewithproceduresoutlinedbyUtahPTAandfindthemtobe(chooseoneofthefollowing):

Correct Incorrect Incompleteforthefollowingreasons:

Date AFR Completed: ___________________________

Signature(s) of Auditor or AFR Committee:

Signature of AFR Committee Member Printed Name



(Note: A computer-generated version of the audit report is acceptable but should provide the same information as outlined here.)

Please attach the AFR Procecdure Checklist to this form when submitting .

Annual Financial Reconciliation (AFR)Report for Fiscal Year: 20___ - 20___

Auditor Name

Address

Signature

Utah PTA - Treasurer - Annual Financial Reconciliation (AFR) : Report


Year-End Financial Statement__________________________________ PTA

Region ______ Council _________________________

FISCAL YEAR July 1, 20______ to June 30, 20_______

BALANCE CARRIED FORWARD $ ____________

ACTUAL REVENUE:

Membership dues __________ @ $ __________ (local portion only) $ ____________

_____________________________________________ ____________

_____________________________________________ ____________

_____________________________________________ ____________

_____________________________________________ ____________

TOTAL REVENUE $ ____________

ACTUAL EXPENDITURES: _____________________________________________ $ ____________

_____________________________________________ ____________

_____________________________________________ ____________

_____________________________________________ ____________

_____________________________________________ ____________

_____________________________________________ ____________ TOTAL EXPENDITURES: $ ____________

BALANCE TO CARRY FORWARD $ ____________ Disbursement of Monies Collected But Not Belonging to Unit:

National PTA __________ @ $2.25 $ ____________

Utah PTA _____________ @ $1.75 $ ____________

Council PTA ___________ @ $____ $ ____________

(# of members)

(# of members)

(# of members) (amount in bylaws)

(# of members)

Total Volunteer Hoursfor July 1, 20____ - June 30, 20____

_________________________________

Unit Sales Tax Refund Request(For Local, Council, and Region Use)

Region / Council _______________________________________________________________________

PTA Unit Name ________________________________________________________________________

President's Name _______________________________________________________________________

Email & Phone _________________________________________________________________________

Treasurer's Name _______________________________________________________________________

Email & Phone _________________________________________________________________________

Units can submit refunds for periods up to 3 years back

¨ Taxes Paid January 1–June 30, 20___ ¨ Taxes Paid July 1–December 31, 20___Due 30 days after period ends

Total Sales Tax $ ________________ (From page 2)

OfficeUse:

Check #__________

Date:_____________

EIN #: __________________________

Date Bylaws Expire ______________________

Have Membership Dues Been Paid? YES / NO



Please list data about tax paid on page 2, or attach a computer-generated report of that information.

I certify that the information on this form is accurate.

_______________________________ _____________________________ Signature Position



(Transfer Total to page 1)

Date Sales TaxFor What PurposeTo Whom Was Check WrittenCheck #

Total: $


Region _______________________________________________________________________________

Council PTA Name _____________________________________________________________________

Council President Name _________________________________________________________________

Email & Phone _________________________________________________________________________

Council Treasurer Name _________________________________________________________________

Email & Phone ________________________________________________________________________

Combined Total: $ _________

Number of Local PTAs in Council __________

Number of Local PTAs Reporting __________

Local PTA Refund Total (from page 2) $__________

Council Refund Total (from Council Report) $__________

I certify that the enclosed unit and council report forms have been checked forcompleteness and for mathematical accuracy.

______________________________ ______________________________ Signature Position


Utah Tax Exempt # 12510060-002-STC


Council Sales Tax RefundCompilation Form

¨ Taxes Paid January 1–June 30, 20___ ¨ Taxes Paid July 1–December 31, 20___Due 45 days after period ends.

Utah PTA - Treasurer - Sales Tax Refund Request - Council Compilation - Page 1

(Transfer Total to page 1)

Compilation of Local PTA Reporting Form Unit Total

Total: $

Utah PTA - Treasurer - Sales Tax Refund Request - Council Compilation - Page 2

PTA Region __________________________________________________________________________

Treasurer (if applicable) __________________________________________________________________________________________

Email Address ________________________________________________________________________


Total for Councils listed below $ _________________ Region Request, if any $ _________________

Combined Total $ _________________

I certify that the enclosed unit and council compilation forms have been checked for completeness and mathematical accuracy.

_________________________________ ___________________________________ Signature Position


Region Sales Tax RefundCompilation Form

¨ Taxes Paid January 1–June 30, 20___ ¨ Taxes Paid July 1–December 31, 20___Due 60 days after period ends.

Council Reporting Sales Tax

Total $

Utah PTA - Treasurer - Sales Tax Refund Request - Region Compilation

Trea

sure

r Appendix IITools


PTA UNIT ____________________________________________

FISCAL YEAR: July 1, _______ TO June 30, _______

Anticipated Income:

Previous Year Budget Previous Year Actual Proposed Budget

TOTAL RECEIPTS:Anticipated Expenditures:

TOTAL DISBURSEMENTS:

Balance to Carry Over:

Balance Carried Forward:

Proposed Budget Worksheet


PTA_______________________Fiscal Year__________________

Deposit # ____________Date:________________

Source of Funds (dues, fundraiser, contribution, etc.): Total Amount: $_________________________________________________________________________________________________________________________________

Funds received by: __________________________________ SignatureDeposit prepared by:__________________________________ Signature

Attach money counting form(s) and/or other supporting documentation to back.

Attach Bank Receipt Here

Funds Received Form


Check Request Form PTA Fiscal Year

Paid by Check #:

Dated:

Pretax Amount:

Sales Tax:

Total Amount:

$

$

$

Date:

Pay to the Order of:

Address:

Phone:

Purpose: Submitted by:

President SignatureApproved by:

Treasurer SignatureReceipt(s) must be attached!

Attach Receipts Here

Attach Canceled Check Here (If returned by bank)

Principals Signature: ____________________________________


ENDING STATEMENT BALANCE:

$ ___________________

ADD DEPOSITS IN TRANSIT (if any), notyet showing on bank statement:

Subtotal $ ___________________

SUBTRACT OUTSTANDING CHECKS (those not yet showing on bank statement):

BALANCE $ _________________________

These two balances should be the same.

Reconciliation prepared by:___________________________________

Reconciliation reviewed by:___________________________________

NOTE: Be sure to record any amounts for interest received, service charges, etc. in your checkbook.This bank reconciliation should be retained with the bank statement.

ENDING CHECKBOOK BALANCE:

$ ___________________

ADD interest received and other credits not yet recorded in checkbook:

Subtotal $ ___________________

SUBTRACT service charges and other debits not yet recorded in checkbook:

BALANCE $ _________________________

PTA Unit_________________________________________________________________

Date of Bank Statement_________________

Bank Reconciliation

TOTAL

Date Amount

TOTAL

Date Check # Amount

TOTAL

Date Amount

TOTAL

Date Amount


Samples of Treasurer’s ReportsThe Treasurer should prepare and present a written Treasurer’s report at each general membership meeting and at executive committee and board meetings as deemed appropriate. In addition to ensuring that the Treasurer’s books are up-to-date, the Treasurer’s report is important for the following reasons:

• ThePresidentneedstohaveacompleteunderstandingofallfinancialmatters.• AllofficersandcommissionersneedtoknowthefinancialpositionofthePTAonaregularbasis.• Themembershiphastherighttoknowhowtheirmoneyisbeinghandled.

The Treasurer can make decisions about report formats based on the frequency of reporting, the amount of activity during the period, and the needs or wants of the executive committee and the membership. It is recommended that a budget-to-actual analysis be presented at least quarterly to facilitate the budget amendmentprocess.ATreasurerkeepinghis/herrecordsmanuallymayfindthereportformsinAppendix2useful. Those using computerized record-keeping systems (such as QuickBooks, Quicken, or Excel) should utilize the capabilities of the program used.

Here are two very different Treasurer’s reports:

% of BudgetBEGINNING BALANCE 4,897$ 4,897$

1,675$ 1,772$ 106%3,000$ 1,485$ 50%3,000$ 1,601$ 53%

INCOMEMembership Dues (Local Portion Only) Book Fair (Net of Related Costs) Business ContributionsFundraisers (Net of Related Costs) 8,000$ 7,898$ 99%

TOTAL INCOME 15,675$ 12,756$

20,572$ 17,653$

EXPENDITURESCommunity Involvement 1,325$ 898$ Education 2,000$ 1,854$ Family Life 2,500$ 1,289$ Health 1,200$ 1,304$ Individual Development 5,750$ 5,801$ Safety 650$ 647$ General & Administrative 950$ 479$

TOTAL EXPENSES 14,375$ 12,272$

ENDING BALANCE 6,197$ 5,381$

Annual Budget Actual Year-‐To-‐Date

Example Elementary PTAFINANCIAL STATEMENT

For the Period: July 1, 2000 to March 31, 2000

BEGINNINGBALANCE $16,904.09

INCOMECANDYSALES

CandySales $76.00 $76.00DONATION $365.85 $365.85BOOKFAIR

BookFairIncome $5,398.22 $5,398.22INTERESTINCOME $72.25 $72.25MEMBERSHIP

TotalIncome $25.00State/National -$20.00Council -$0.50 $4.50


EXPENDITURESCOMMUNITYINVOLVEMENT

SpiritWeek $22.32 $22.32EDUCATION

ReadingRewards $267.51ScienceFair $522.10 $789.61

HEALTH $50.00 $50.00INDIVIDUALDEVELOPMENT $0.00 $0.00BOOKFAIRCOSTS $3,624.78 $3,624.78GENERAL&ADMINISTRATIVE $74.10 $74.10SALESTAXPAID $55.10 $55.10

TOTALEXPENDITURES $4,615.91 $4,615.91

BALANCEASOFFEBRUARY28,2013 $18,205.00CHECKING $4,162.31SAVINGS $13,970.44

$18,132.75

SUBMITTEDBY:________________________,TreasurerDate:April13,2013

SampleElementaryPTASAMPLETREASURER'SREPORT

3/1/20___


Monthly Treasurer’s Report_____________________________

_____________________________________________

BALANCE on hand as of ______________________ $ ____________

INCOME (by category):

_____________________________________________ __________

_____________________________________________ __________

_____________________________________________ __________

TOTAL INCOME $ ____________

SUBTOTAL $ ____________

EXPENDITURES (by category):

_____________________________________________ __________

_____________________________________________ __________

_____________________________________________ __________

_____________________________________________ __________

_____________________________________________ __________

TOTAL EXPENDITURES: $ ____________

Subtotal - Expenditures = Balance Forward

BALANCE on hand as of ______________________ $ ____________

BALANCE TO CARRY FORWARD $ ____________ Disbursement of Monies Collected But Not Belonging to Unit:

National PTA __________ @ $2.25 $ ____________

Utah PTA _____________ @ $1.75 $ ____________

Council PTA ___________ @ $____ $ ____________

(Month/Year)

(Name of PTA Unit)

(Beginning of Month/Year)

(End of Month/Year) (This amount is “balance on hand” on next report)


PTA UNIT _______________________________________

BUDGET TO ACTUAL COMPARISON AS OF ________________Date

Income:

Budgeted Amount Actual Amount Difference

TOTAL INCOME:Expenditures:

TOTAL RECEIPTS:

Budget Analysis Report


Money Counting Sheet

87Utah PTA Treasurer Handbook − 2017-2018

Money Counting SheetPTA: ___________________________________________Function: _______________________________________

Date: ________________________

_____ X $ .01 (Pennies) = $ ___________

_____ X $ .05 (Nickels) = $ ___________

_____ X $ .10 (Dimes) = $ ___________

_____ X $ .25 (Quarters) = $ ___________

_____ X $ .50 (Fifty Cents) = $ ___________

_____ X $1.00 (One Dollar) = $ ___________

_____ X $ .50 (Pennies) = $ ___________

_____ X $ 2.00 (Nickels) = $ ___________

_____ X $ 5.00 (Dimes) = $ ___________

_____ X $10.00 (Quarters) = $ ___________

TOTAL COINS = $ ________________________

_____ X $ 1 (Ones) = $ ___________

_____ X $ 1 (Twos) = $ ___________

_____ X $ 5 (Fives) = $ ___________

_____ X $ 10 (Tens) = $ ___________

_____ X $ 20 (Twenties) = $ ___________

_____ X $ 50 (Fifties) = $ ___________

_____ X $100 (Hundreds) = $ ___________

TOTAL BILLS = $ _______________________

______________ Number of checks

TOTAL CHECKS: = $ _______________________

GRAND TOTAL = $ ________________________

SIGNATURES:

Verified by: ______________________________________

Verified by: ______________________________________

Verified by: _______________________________________

LOO

SE

CO

INS

BIL

LSR

OLL

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Note: Beginning cash box total should be counted separately and not included in calculations of receipts

Money Counting SheetPTA: ___________________________________________Function: _______________________________________

Date: ________________________

_____ X $ .01 (Pennies) = $ ___________

_____ X $ .05 (Nickels) = $ ___________

_____ X $ .10 (Dimes) = $ ___________

_____ X $ .25 (Quarters) = $ ___________

_____ X $ .50 (Fifty Cents) = $ ___________

_____ X $1.00 (One Dollar) = $ ___________

_____ X $ .50 (Pennies) = $ ___________

_____ X $ 2.00 (Nickels) = $ ___________

_____ X $ 5.00 (Dimes) = $ ___________

_____ X $10.00 (Quarters) = $ ___________

TOTAL COINS = $ ________________________

_____ X $ 1 (Ones) = $ ___________

_____ X $ 1 (Twos) = $ ___________

_____ X $ 5 (Fives) = $ ___________

_____ X $ 10 (Tens) = $ ___________

_____ X $ 20 (Twenties) = $ ___________

_____ X $ 50 (Fifties) = $ ___________

_____ X $100 (Hundreds) = $ ___________

TOTAL BILLS = $ _______________________

______________ Number of checks

TOTAL CHECKS: = $ _______________________

GRAND TOTAL = $ ________________________

SIGNATURES:

Verified by: ______________________________________

Verified by: ______________________________________

Verified by: _______________________________________

LOO

SE

CO

INS

BIL

LSR

OLL

ED

CO

INS

Note: Beginning cash box total should be counted separately and not included in calculations of receipts


Priz

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Beginning Cash Box Balance

PTA: ___________________________________________

Function: _______________________________________

Date: ________________________

_______ X $ .01 (Pennies) = $ ____________

_______ X $ .05 (Nickels) = $ ____________ _______ X $ .10 (Dimes) = $ ____________

_______ X $ .25 (Quarters) = $ ____________

_______ X $ .50 (Pennies) = $ ____________

_______ X $ 2.00 (Nickels) = $ ____________ _______ X $ 5.00 (Dimes) = $ ____________

_______ X $10.00 (Quarters) = $ ____________

TOTAL COINS = $ ________________

_______ X $ 1 (Ones) = $ ____________

_______ X $ 5 (Fives) = $ ____________ _______ X $ 10 (Tens) = $ ____________

_______ X $ 20 (Twenties) = $ ____________

TOTAL CURRENCY (BILLS) = $ _______________

Beginning Cash Box Total = $ __________________

SIGNATURES:___________________________________________

____________________________________________

Treasurer

Event Chairman

BIL

LSR

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LOO

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Beginning Cash Box Balance

PTA: ___________________________________________

Function: _______________________________________

Date: ________________________

_______ X $ .01 (Pennies) = $ ____________

_______ X $ .05 (Nickels) = $ ____________ _______ X $ .10 (Dimes) = $ ____________

_______ X $ .25 (Quarters) = $ ____________

_______ X $ .50 (Pennies) = $ ____________

_______ X $ 2.00 (Nickels) = $ ____________ _______ X $ 5.00 (Dimes) = $ ____________

_______ X $10.00 (Quarters) = $ ____________

TOTAL COINS = $ ________________

_______ X $ 1 (Ones) = $ ____________

_______ X $ 5 (Fives) = $ ____________ _______ X $ 10 (Tens) = $ ____________

_______ X $ 20 (Twenties) = $ ____________

TOTAL CURRENCY (BILLS) = $ _______________

Beginning Cash Box Total = $ __________________

SIGNATURES:___________________________________________

____________________________________________

Treasurer

Event Chairman

BIL

LSR

OLL

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LOO

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When holding an event, there are several things to consider:

Whatisthefundraisinggoal?

Whatisourbudgetforexpenses?

Doweneedinsurance?

Ifapplicable,hastheevent/fundraisingcompanybeenapprovedbyourschooldistrict?

DidIgetcashboxcash?

DoIhavethree(3)peopleassignedformoneyintake?

DoIhavethree(3)peopleassignedtocountmoney?

Whoaretwo(2)peopleassignedtodepositmoneyatthebank:

Ifafterhours,haveImadearrangementsforanightdeposit?

PTA Event Checklist


________________________________________PTA hereby gives to _____________________

School a monetary grant in the amount of $ ________________ (check # __________).

This grant is for the sole and express purpose of : ______________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

It is agreed between the PTA and the School that the grant will be spent for its intended purpose

on or before _________________________, 20______. Any unused portion of the grant will be

returnedtothePTA.ItisfurtheragreedthatfailurebytheSchooltofulfillthetermsofthisgrant

asspecifiedhereinandbythedatesstatedhereinwillresultinthegrantbeingreturnedinfullto

the PTA. When the terms of this grant have been met, the School will present a written report to

the PTA with full disclosure of expenses incurred.

___________________________________ ____________________

___________________________________ ____________________

___________________________________ ____________________

School Principal Date

PTA President Date

PTA Treasurer Date

(date)

Financial Grant Agreement


In-Kind Donation Form

Event: _______________________ Date of Event: ___________________________________

City:_________________________________________County: _________________________

Description of Item (including quantities): ___________________________________________

___________________________________

___________________________________

Estimated Fair Market Value: $ _________________ Donation: _________________________

Fair Market Value of any goods or services given to donor in return: $_____________________

Individual donor or company name: ________________________________________________

Name of person to be thanked: ____________________________________________________

Address: _____________________________________________________________________

City:________________________________ State: _____ Zip: _________________________

Phone: _____________________________ Email: ___________________________________

Date Received: _______ By (PTA Representative): ___________________________________

Local PTA Name: ______________________________________________________________

Local PTA Address: ____________________________________________________________

City:________________________________ State: _____ Zip: _________________________


SAMPLE

[LocalPTAorSchoolLetterhead][Date][RecipientName][Title][Companyname][StreetAddress][City,State,Zip]Dear[RecipientName],[Yourschoolname]PTAisalocalbasedserviceorganizationservingtheneedsofchildrenin[Yourschooldistrict].Weareseekingadonationfor[explainwhattherequestisfor].[Nameofevent]willbeheldon[dateofevent].Yourcompanycanhelpusbyprovidingfundsintheformofagrantorbydonatinggoodsandservices.The[yourPTAname]iscoveredundertheUtahStatePTA,whichisa501(c)(3)corporationsoalldonationscanbetaxdeductions.Thistaxnumbercanbeprovideduponrequest.Iwillcontactyouon[date],toansweranyquestionsthatyoumighthaveinregardstothisdonation.Ifthereareanyquestionsthatyouneedaddressedsooner,Icanbecontactedat[yourphonenumberand/oremail].Thankyouinadvanceforyoursupport.Sincerely,[Yourname][Title][Contactphone][Emailaddress]

Sample Donation Request Letter


SAMPLE

[Local School Letterhead]

[Date]

[Recipient Name] [Title] [Company Name] [Street Address] [City, ST ZIP Code]

Dear [Recipient Name]:

[Your School Name] PTA wants to thank you for your donation of [add name and amount of donation] for [Name of the Event] which was held on [Date of Event].

Your company’s help made our [name of event] a great success. (add in some details of how their contribution was used and the children that it affected.)

Sincerely,

[Your Name] [Title] [Contact phone] [Email address]

Sample Thank You Letter


PTA FundsPTA funds are used to help fulfill the three Utah PTA goals:

■ Advocateforchildren

■ Involveparentsintheschools

■ Developleadershipandparentingskills

Do You Have These Basic Controls In Place? ■ The treasurer maintains custody of the checkbook at all times.

■ Supporting documentation is required for every disbursement made.

■ Payments are made from original invoices whenever feasible.

■ Checks are issued in number sequence order.

■ All checks have two signatures, the treasurer and the president, except in emergencies, when any two (2) of the following may sign: president, president-elect, secretary, or treasurer (None of these officers may be related by blood or marriage or reside in the same household.);

■ There are no blank checks with a signature(s)!

■ Checks are never made out to “cash.”

■ Detailed supporting documentation is maintained for every deposit made.

■ Three people are present for all counting of cash (membership drive, book fair, fundraiser, etc.).

■ All money received is deposited the same day, using the bank’s night depository for events concluded after banking hours.

■ The monthly bank statement should be mailed to the PTA at the school address. When the bank statement arrives, a designated Board member (not the President, Treasurer or Secretary) should immediately review it, initial it and then give it to the President to review and initial. Then it will be given to the Treasurer to reconcile.

■ Bank statements are reconciled to check registers in a timely manner.

■ There are no ATM, debit cards, or credit cards in connection with PTA accounts.

■ The treasurer prepares and presents a treasurer’s report at each general membership meeting and at executive committee and board meetings as deemed appropriate.

PTA Basic Fiscal Management ProceduresInformation


PTAs must have money to operate. They do not exist to raise money but rather raise money to exist. Without realizing the problems inherent in the management of an organization’s finances, some PTA members or officers have found themselves in difficult situations. These situations can be avoided by following the above-mentioned basic fiscal management procedures. Each PTA should recognize that the treasurer is the legally responsible, authorized custodian, elected by the members to have charge of the funds of the PTA unit. He or she should receive and disburse all moneys as prescribed in the local bylaws or as authorized by action of the PTA’s Board of Directors. He or she should keep a full account of receipts and expenditures.

It is essential that the president, who bears full responsibility for the total affairs of the PTA unit, work closely with the treasurer at all times and have a complete understanding of all financial matters. All persons signing on a PTA checking account are liable for the use or misuse of those funds.

Other officers or members may be required to occasionally handle PTA money (for example, dues from membership enrollment or revenue from a fundraising project). In these cases, great care should be taken in counting and recording moneys received in accordance with established procedures. Money thus collected should be turned over to the treasurer without delay, and the treasurer should bank that money immediately. PTA money should never be stored in the school or in the homes of PTA officers or members. If large sums are handled by the treasurer, it is advisable to bond him or her as a protection both to the treasurer and to the PTA.

If any volunteer involved in a Local/Council PTA has been included in/or part of fraudulent charges or mishandling of funds, he or she will not be allowed to serve in any position on your Board that deals with handling money.

Local PTAs should maintain one checking account with one checkbook. Two signatures should be required for all checks. None of those authorized to sign checks may be related by blood or marriage nor reside in the same household. The checking account should be maintained in a bank approved by the Board of Directors. PTA moneys should not be deposited in the personal account of any officer nor comingled with school accounts. It is an unfortunate fact that non-profit organizations are susceptible to fraud. PTAs are run by volunteers who want to trust one another, but the trusting environment of the PTA is exactly what a dishonest individual exploits.

PTA cannot reimburse anyone who has purchased PTA supplies with government issued or non-personal funds. It is against the law.

One of the most important things that you can do for the well-being of your PTA is to implement and follow a system of internal controls. Good internal controls are reasonable rules that are consistently applied. They guard against both errors—unintentional mistakes—and irregularities—deliberate attempts to misuse or misappropriate the assets of the PTA.


Guidelines to Follow When Money Has Been Mismanaged or Embezzled

1. When mismanagement or embezzlement of funds is suspected, the PTA line of communication should be followed in informing and receiving direction and assistance. The local PTA should contact the council (region if no council). The council in turn will contact the region, and the region will make contact with the Utah PTA treasurer. If for some reason assistance cannot be obtained through the line of communication, contact the Utah PTA treasurer directly.

2. When any wrongdoing is suspected, the person involved should have a meeting with the local executive committee and make an explanation of what has happened. If the meeting is unsatisfactory for either party, the decision may be appealed up the line of communication. If the issue involves a president or president-elect, council/region leadership must facilitate the meeting. Once wrongdoing is suspected, meetings should take place in a timely manner. If an outside investigation is warranted, authorities may become involved.

3. The PTA officers have a responsibility to the membership for all PTA monies. The PTA also has the responsibility to be a professional organization. The PTA officers are highly encouraged to try to protect the person’s reputation by using discretion in what is said and done, especially in the preliminary stages of an investigation. It is not responsible, however, to disregard the incident.

4. If the results of the meeting warrant further action, the executive committee should request that an AFR be done, if appropriate, and documentation gathered. They should also carefully consider whether it might be appropriate to file a police report and/or to close the bank account. If an outside investigation is warranted, the police will become involved.

5. Theft of money is breaking the law and should be handled as a serious offense. Embezzlement is the same as ordinary theft. The charges are criminal and, if deemed appropriate, are filed at the police department. Depending on the amount it could be a misdemeanor up to a felony.

6. According to the local PTA bylaws (Article VI, Section 7b), a person who fails to perform the duties of his office should be removed from office. It is the responsibility of the local executive committee to meet and declare the office or position vacant. All resignations must be made in writing to the president. The local executive committee is to elect a replacement to fill any vacancy, except the President-elect (local PTA bylaws Article 6, section 7a).


We have read, understand, and agree to abide by the Basic PTA Fiscal Management Procedures. Region _______ Council (if applicable) _____________________________________________________

Local PTA ____________________________________________________________________________ President ______________________________________________________________________________

Treasurer _____________________________________________________________________________

AllotherelectedPTAofficers’signatures:

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

Membership chair’s signature:

______________________________________________________________________________________

Fundraising chairs’ signatures:

______________________________________________________________________________________

______________________________________________________________________________________

Each local PTA shall obtain the appropriate signatures on this form, make a copy of the form for all signers, and submit the signed page through MemberHub by September 1.

When submitting, only send this page - You do not need to include the Information pages.

(Print Name) (Signature) (Date)





(Print Name) (Position) (Signature) (Date)







PTA Basic Fiscal Management ProceduresSignature Page


Members of the Board of Directors (board members) of this PTA/PTSA serve in a fiduciary capacity and owe a duty of care, a duty of obedience, and a duty of loyalty to this PTA/PTSA. Board members shall conduct themselves with integrity and honesty and act in the best interests of this PTA /PTSA. Disclosure by a board member of any potential or actual conflict of interest is required by the standard of good faith and for the benefit of the PTA and protection of each individual.

In consideration of our local PTA/PTSA affiliation with the Utah Congress of Parents and Teachers (Utah PTA), for the protection of its integrity and its 501(c)(3) status and for our protection, we, the undersigned officers, individually, during our term of office, shall:

1. Abide by and represent our PTA/PTSA bylaws, Utah PTA policies, positions, procedures, and National PTA Purposes and mission statement;

2. Discharge the duties and responsibilities of our individual offices with fidelity, integrity, and honesty and declare any and all personal and/or extended family conflicts of interest when PTA issues, decisions, and funds are involved;

3. Not misuse the PTA’s federal tax-exempt status or exemption from sales tax for personal or unauthorized purposes nor disburse funds for any purpose other than authorized, budgeted PTA programs, projects, and activities;

4. Refrain from making slanderous or defamatory comments regarding any individual or organization;■ Refrainfromhavingdisruptiveargumentsaroundchildrenandonschoolproperty.

5. Follow Utah PTA and school district guidelines for fundraising;6. Abide by the following conflict of interest policy:

■ Boardmembersand/or their families shallnotuse their relation to thisPTA/PTSAfor financial,professional, business, employment, personal, and/or political gain.

■ Aconflictofinterestexistswhenaboardmemberwouldhavetoparticipateinthedeliberationordecision of any issue of this PTA/PTSA while, at the same time, the board member and/or his/her extended family has financial, professional, business, employment, personal, and/or political interests outside the PTA that could predispose or bias the board member to a particular view, goal, or decision.

■ BoardmembersshalldeclaretotheofficersofthisPTA/PTSAconflictsofinterest(statingthenatureof the conflict and pertinent information as appropriate) between their duties of this PTA/PTSA and their and/or their extended families’ financial, professional, business, employment, personal, and/or political interests.

■ Whenaconflictofinterestisdeclared,theboardmembershallnotusehisorherpersonalinfluenceor position to affect the outcome of the vote and shall leave the room during deliberations and the vote.

■ Theminutesofthemeetingshallreflectthataconflictofinterestwasdeclared.■ Boardmembersshallnot:

▪ UsePTA’sname,influence,orresourcesfortheirbenefitorgainwhenrunningforanypublicelected office or while serving as an elected official.

▪ Directlyor indirectlyuse theircurrentPTAposition, thePTAname,or theassociationfororagainst any specific candidate for elected office, which is contrary to federal tax laws and the guidelines and policies of the PTA. (Past PTA experience may be listed in any brochures.)

PTA Ethics/Conflict of Interest PolicyInformation


7. PTA does not recognize co-elected positions. Refer to PTA/PTSA Bylaws information in President’s Handbook (refer to officer’s section Bylaws)

Guidelines to Follow When There has been Mismanagement or a Conflict of Interest

1. When mismanagement and/or conflict of interest is suspected, the following PTA lines of communication of informing, receiving direction and assistance should be followed: The local PTA should contact the council. The council in turn should contact the region, and the region will contact Utah PTA. If for some reason assistance cannot be obtained through this line of communication, contact Utah PTA directly.

2. When any wrongdoing is suspected those involved should have a meeting with the local executive committee with notification given to the council/region representative. If the outcome of the meeting is unsatisfactory for either party, the decision may be appealed up the lines of communication. If the issue involves a president or president-elect, council/region leadership must facilitate the meeting. Once wrongdoing is suspected, a meeting should take place in a timely manner. If an outside investigation is warranted, authorities may become involved.

3. The PTA officers and/or Board members have a responsibility to the membership and to act in a professional manner. Refer to local PTA bylaws (Article VI, Section 1), “The officers of this PTA/PTSA shall abide by, promote, and represent the Purposes, mission, bylaws, policies, and procedures of PTA.” The PTA officers and/or Board members should protect the person’s reputation by using discretion in what is said and done, especially in the preliminary stages of an investigation. However, it is not acceptable to disregard the incident.

4. Refer to local PTA bylaws (Article VI, Sections 7b, c and d): 7b. “If an officer or appointee fails… to perform the duties of his office the members of the executive

committee shall meet and declare the office or position vacant.”7c. “All resignations must be made in writing to the president.” If the office of president is declared

vacant, the letter of resignation must be made to the council/region/Utah PTA.7d. A vacancy occurring in the office of president shall be filled for the remainder of the unexpired term

by the president-elect, who shall then cease to be president-elect. A vacancy occurring in the office of president-elect shall be filled by a vote of the general membership at a special election meeting called by the president, all members having been notified. A vacancy occurring in any other office shall be filled for the remainder of the unexpired term by a person elected by a majority vote of the remaining members of the executive committee, all members of the committee having been notified.”

5. When necessary, the Region Director and/or Utah PTA may declare the office or position vacant.


Region _______ Council (If applicable) ______________________________________________________

Local PTA/PTSA _____________________________President ___________________________________

We, the undersigned officers, commissioners, and Board members have read and agree to abide by this policy and understand that the failure to adhere to the above guidelines may result in the termination of the undersigned as officers, commissioners, and Board members will require the immediate return of all funds belonging to this PTA/PTSA in the possession of the undersigned together with all PTA documents and materials.

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Each local PTA shall obtain the appropriate signatures on this form, make a copy of the form for all signers, and submit the signature page through MemberHub by August 1.

When submitting, only send this page - You do not need to include the Information pages.











PTA Ethics/Conflict of Interest PolicySignature Page

Trea

sure

r General PTA Information


The National Standards for Family-School Partnerships are voluntary guidelines to strengthen parent and family involvement on behalf of children in schools and other programs. The six standards and their quality indicators provide PTAs, schools, and communities with the components that are needed for highly effective family-school involvement programs.

PTAleadersandallthoseinterestedinmoreeffectivefamily/school/communityconnectionswillfindtheNational Standards for Family-School Partnerships to be a valuable resource and catalyst for action.

What are the National Standards?

BackgroundOur nation acknowledged the important role of parent involvement through its enactment of the 8th National Education Goal:

Every school will promote partnerships that will increase parental involvement and participation in promoting the social, emotional and academic growth of children.

Utah PTA supports this goal. The standards were designed to raise the level of expectation about how family-school involvement programs can improve student achievement and life success by engaging families in true partnership with educators and community leaders.

How Were the Standards Developed?The standards were developed by the National PTA in collaboration with parent involvement researchers and other national leaders. They are endorsed by more than 30 professional education and family-school

Welcoming All Families Into The School Community

Families are active participants in the life of the school and feel welcomed, valued and connected to each other, to school staff and to what students are learning and doing in class.

Communicating Effectively Families and school staff engage in regular, two-way and meaningful communication about student learning.

Supporting Student SuccessFamilies and school staff continuously collaborate to support students’ learning and healthy development, both at home and at school and have regular opportunities that will support their success.

Speaking Up For Every Child Families are empowered to be advocates for their own and other children, to ensure that students are treated fairly and have access to learning opportunities that will support their success.

Sharing PowerFamilies and school staff are equal partners in decisions that affect children and families and together inform, influence and createpolicies, practices and programs.

Collaborating With CommunityFamilies and school staff collaborate with community members to connect students, families and staff to expand learning opportunities, community services and civic participation.

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involvement organizations. The standards clearly delineate those practices that have been shown to lead to success and high-quality parent involvement programs. The standards were developed to be a practical tool for meeting the threefold purpose of the national standards which is: 1. To promote meaningful parent and family participation 2. To raise awareness regarding the components of effective programs 3. To provide guidelines for schools that wish to improve their programs

How Can My PTA Use These Standards?Before you begin to develop new or improve on existing family-school involvement programs, form a committee or action team including all of the stakeholders—parents, teachers, administrators, support staff and community leaders. Be sure everyone involved understands the group’s purpose: to recognize the importance of parent and family involvement, review the standards, look broadly at current programs or practices at your school and make recommendations about what steps are needed to initiate positive change.

Developing genuine collaboration is critical. The views of all stakeholders should be considered and valued and no one group should control the outcomes. Establishing trust and a true partnership will take time, but theextraeffortiswellworththelastingbenefitsthatcanbegained.Meaningfulchangerequiresthoughtful,incrementalsteps.Layingasolidfoundationcanmakeallthedifferenceinthefinaloutcomesandsuccessof your programs.

Creating an Action PlanWhen parents, educators and community leaders make parent involvement a mutual goal, they can begin to work together as a team to create an action plan for reaching and maintaining the standards. Give each step adequate attention to ensure the overall effectiveness of your plan. Set realistic and achievable goals. Remember: Success Breeds Success. Accomplishing obtainable goals and then setting additional ones works better than reaching too high and trying to achieve too much in the beginning.

When implementing your action plan, consider local needs, priorities and the demographics of your school and community. Involve those who will be instrumental in carrying out the plan to help develop the steps or procedures to implement it. This uses a bottom-up rather than top-down team approach which allows for greater support and cooperation from everyone involved.

Family involvement should not be seen as an “add-on” program feature, but rather as an essential component in the ongoing goal of improved student success. In order to be most effective, the family-school involvement plan should be fully integrated into the overall school or program improvement process.

Making ProgressOncethegroundworkislaidandallstakeholdersunderstandthevalueofthepartnership,thenredefining,reshaping and “scaling up” planned activities and goals maintains the momentum of program change. As noted, family involvement is a process, not merely a series of “one shot” activities or plans carried out and then retired. It is crucial that the standards be implemented in an ongoing pattern of planning, action and evaluation on a consistent basis. Each measurable success fosters a pattern of continual, meaningful partnership.


Take a positive approach and build on the commendable practices that already exist in your school or programs. Accommodate diverse populations. Consider the needs of all families and plan meetings and structure activities to best involve everyone.

Involve all the stakeholders—parents, teachers, administrators, support staff and community members. Enlist the full participation of those who will implement the program or activity to help design the action plan prior to launching the program.

Involve school or program support staff, as well as educators and administrators, in the process. Provide program training for parents, staff and administrators as needed to implement the action plan.

Offer PTA assistance. Encourage your PTA members to work closely with the school or program administrators to be an effective team model for implementing the action plan and facilitating family-school involvement.

Reinforce the truth that family and community involvement is more than fundraising or collecting donations for projects and activities.

Positive Approach

InvolveAll

ProvideTraining

OfferAssistance

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Key Points To Remember

PTA Line of Communication

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Why be a PTA School?

Is the largest volunteer child advocacy organization in Utah with over 685 local units and councils. Utah PTA is a partnership between parents, educators, students, and individuals who want to make a difference in the life of a child. Members of Utah PTA are also affiliated with millions of members of National PTA, an association that is actively involved in promoting activities and legislation that support the nation’s public school children.Supports many of the National PTA programs and legislative efforts as they relate to the welfare of Utah’s public school children.Participates in numerous committees, coalitions, conferences, summits, and programs for children and youth.Holds an annual Leadership Convention to train PTA leaders across the state as well as an annual PTA Day at the Capitol and Advocacy Conference to bring important grassroots issues to the membership.Provides valuable parent information through leadership trainings, various handbooks and emails. Utah PTA has programs for children and youth, including Reflections, Hope for Tomorrow, Battle of the Bands, PTA Take Your Family to School Week, Teen Dating Violence Awareness and Prevention Week and more.The backbone is the organization of diverse volunteer members who donated millions of hours to benefit the children in local public schools.Advocates for all children in schools and districts, and by following bills that are supported by Utah PTA resolutions that originate from the grass roots—their members.Is the watchdog for Trust Lands money, making sure the monies keep flowing to the local schools and that all uses of the land benefit the children of Utah.Supports all public schools, including public charter schools.When a school forms a PTA, it becomes a member of the largest child advocacy group in Utah and the United States, and will:

● Be under the umbrella of the Utah PTA’s 501(c)(3). They will be issued an EIN for banking purposes and IRS filings and a PTA Unit ID Number from National PTA.

● Have bylaws that govern them.● Have only one agenda—the children.● Have the support of Utah PTA and National PTA.● Have researched resources and handbooks from Utah PTA.● Have the opportunity for their children to participate in the Reflections program.● Have the opportunity to participate in PTA Awards and any PTA programs.● Have leadership trainings.● Receive regular communication from council, region, and Utah PTA.● Have a member-to-member parent information base with National PTA.● Have a larger voice on issues that face their school—every child.one voice.● Have regular information about upcoming events, conferences, and legislative issues, education,

health, and safety issues through emails, and Utah PTA website: www.utahpta.org.A Local PTA organization is a viable, involved association within every community that seeks to benefit the education, safety, and welfare of children and youth. Local businesses, organizations, school community, and community leaders work together with PTA to develop common bonds that further local values and goals that strengthen family, school, and community.

Utah PTA:


Utah PTA Facts

National and Utah PTA ProgramsReflections

Healthy LifestylesSchool of Excellence

Take Your Family to School WeekTeacher Appreciation

Utah PTA ProgramsBattle of the Bands (PTSA)

Ribbon WeekHope for Tomorrow, with NAMI Utah

Healthy Relationships (PTSA)

Conferences and TrainingsAdvocacy Conference (October)

PTA Day at the Capitol (February)Leadership Convention (May)

PTSA Student Leadership Conference (May)

Utah PTA Awards and GrantsUtah PTA Awards

LEAP Award Membership Awards

Arts Education Fund Grant

Special PTA State CommitteesSpecial Needs

Positions included in CommissionsDiversity & Inclusivity

Male InvolvementMilitary Families

History: Utah PTA joined National PTA in 1925. Utah PTA is the largest child advocacy and volunteer association in the state. National PTA was established more than 100 years ago to address children’s issues.

Membership: Being the largest advocacy association in Utah, more than 80,000 individuals volunteer and participate in 628 Local and Council PTAs within the state.

Organization: Utah is divided into 21 geographic PTA regions, each served by a Region Director. In large districts, the Region Director works with area Councils. The Council President then works with the local school PTA President. In rural areas, two or more school districts are under one Region Director. Local PTA Presidents meet on a regular basis throughout the school year with Council Presidents/Region Directors. Presidents-elect and Principals may also be included in these meetings. Local PTAs also meet on a regular basis throughout the year in Executive Committee and Board meetings and work with administrators, teachers, staff, parents, and students.

Affiliation: Utah PTA is an affiliate of the National PTA. National PTA is composed of 54 state congresses and more than 20,000 local units in all 50 states, the District of Columbia, U.S. Virgin Islands, Puerto Rico and the Department of Defense Schools in Europe. State PTAs are the liaison between the local PTA and National PTA, helping each to function effectively and to support and sustain the other. PTAs at the local level are valuable assets to their school communities by providing educational and parent involvement information, resources, events, and activities.

Parental Involvement: In 2018, Utah PTA volunteers reported 1,329,786 hours of service to Utah’s children in their local public schools. If this volunteer service were translated into monetary value, it would be worth $37,951,307.13!

Important Information

Utah PTA also has an exemption from sales tax from the Utah State Tax Commission. State law requires every PTA to pay sales tax on purchases under $1,000 and then request a refund. Utah PTA has established a procedure for applying for the refund. See the Financial section. Contact the Utah PTA Treasurer for more information.


According to the PTA bylaws, all meetings shall be governed by Robert’s Rules of Order Newly Revised. In addition, all Board members shall:

■ Abide by all PTA rules and meet all PTA deadlines. ■ Ensure that the PTA database information (names, addresses, etc.) be for use of PTA Board members

only. The confidentiality of hard copies and electronic copies shall be protected. ■ Attend all Board meetings and applicable Executive Committee meetings. ■ Notify the President as soon as possible if an emergency occurs and they are unable to attend a

scheduled PTA meeting. ■ Arrive on time and remain to the conclusion of the meeting except in cases of individual emergencies. ■ Begin all meetings on time. ■ Be allowed a 10-minute break every two hours, returning promptly. ■ Remain in a meeting while in session. ■ Hold all but emergency calls. Leave the room to answer a call. ■ Turn all cell phones to off or vibrate. ■ Complete preparation before or after meetings, not during meetings. ■ Refrain from holding side conversations. ■ Direct all comments and questions through the chair. ■ Maintain professional courtesy at all times, including being supportive rather than judgmental,

respecting differences of opinion, and listening to others’ ideas without prejudice. ■ Give feedback directly and openly in a timely fashion. ■ Acknowledge problems and deal with them as they arise. ■ Be prepared to present agenda items in a concise manner and focus on tasks and the process and not

on personalities or hidden agendas. ■ Obtain missed information during breaks out of consideration of others. ■ Adjourn at the scheduled time, as per the printed agenda. ■ Dress to match the dress of those also attending a meeting when representing PTA. ■ Wear name badges when representing PTA. ■ Notify President of address, phone number, and email changes as soon as possible. ■ Stay at home out of consideration for the health of others if ill and possibly contagious.

Be A PTA Professional

Bylaws must be renewed every three years. Check the red stamp at the top right of the first page of your bylaws. This date will show if your bylaws are current or need to be renewed.

Found on the front page of your local PTA bylaws: ■ Your PTA Unit ID Number needs to go on your membership remittance form and cards and Reflections

entries. It is your PTA identification number, as assigned by National PTA.

■ Your EIN (Employer Identification Number) is needed for all IRS filings and the PTA’s bank account. It is your IRS identification number.


Utah Regions Map

Box Elder

Tooele

Tintic

Millard

Beaver

Iron

Washington Kane

Garfield

Wayne

San Juan

GrandEmery

South Sanpete

NorthSanpete

Sevier

Carbon

UintahDuchesneAlpine

NeboProvo

Juab

Wasatch

ParkCity

South Summit

North Summit Daggett

Piute

Cache

Rich

Ogden

Davis

Salt LakeGraniteMurrayJordan

Canyons

Weber

Morgan

Logan

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15

16

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18

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11

8

21

2

3

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Utah PTA Regions Map

School Districts

Regions#

Children Learn What They LiveIf children live with ...

...Tolerancethey learn to be patient

...Encouragementthey learn confidence

...Praisethey learn to appreciate

...Fairnessthey learn justice

...Securitythey learn to have faith

...Approvalthey learn to like themselves

...Acceptance and Friendship

they learn to find love in the world

...criticismthey learn to condemn

...hostilitythey learn to fight

...ridiculethey learn to be shy

...shame

they learn to feel guilty

Resources

5192 S. Greenpine Drive, Salt Lake City, UT 84123Telephone: (801) 261-3100 ▪ Fax: (801) 261-3110

[email protected]

www.UtahPTA.orgMonday - Thursday

9:00 to 3:00Closed Friday

Closed holidays - Please call before you come to ensure office is open.

UtahPTA

Pinterest

Utah PTA - www.utahpta.org

YouTube

Utah PTA One Voice

Instagram

Utahpta

Facebook

Facebook Groups that you can join:Utah PTA

Utah PTA Super SecondaryUtah PTA Excellent Elementary

TreasurersReflections

Community Council

Twitter

@UtahPTAOneVoice

FollowUtahPTA

National PTA Headquarters1250 N. Pitt Street, Alexandria, VA 22314

Telephone: (703) 518-1200Toll Free: (800) 307-4PTA (4782)

Fax: (703) [email protected]

www.PTA.org

NationalPTA

treasurer - utah pta treasurers handbook-1.pdfpta/ptsa will be referred to as pta in this handbook....

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